Sole proprietors and other small business owners who rely on any number of credit cards for purchases, payments, and other transactions can attest that the high cost of requisite fees and interest can add up to huge out-of-pocket expenses.
One effective way small businesses owners can decrease extra spending, save money, increase dollars and enjoy the many benefits that will help streamline business operations, is to switch from a merchant service to a payment service account.
Payment services such as PayPal, eGold or Clickbank are cheaper, faster and easier to manage and boast a variety of features, such as low monthly fees, discount percentages and programs that add up to big savings.Â Although payment services have reduced fees, the cost for each transaction may be higher, so it’s important to calculate the cost before deciding if this option is feasible for your business. Use an average invoice total and multiply by 12 for a base total. Next, add in twelve months worth of fees for statement, monthly access, discount percentages, per transaction cost, and any other relevant costs.
This is an example of your total. You can also repeat this with several payment services using their costs to see which one, over time, would be less expensive for you.Â For example, if you’re paying a $15 statement fee, $20 monthly fee, 3% plus $.35 per transaction and $25 monthly gateway fee, your annual expenses would be $742.20 for an average transaction of $50.00. Your annual fees for a payment service with 3.5%, $1.00 per transaction and a one-time $50.00 set up charge would only be $83.00 per year for a total savings of $659.20 annually.
Payment services simplify transactions, expedite billing and receipt of payment and are a godsend for record keeping purposes during tax season.Â PayPal, for instance, gives users access to an assortment of must-have options and resources that help save money, time and resources which in turn can be utilized toward other more pertinent projects. Customers can shop your website, as well as receive and pay invoices securely online, all of which saves time and money on mailing paper bills, making phone calls for payment or sending reminder emails.
The ever popular PayPal service offers multiple benefits and conveniences that are great, whether you’re an avid shopper or a sole proprietor. You can track monthly spending to help stay on budget, transfer funds between accounts or make purchases securely online. Also, if your business already accepts credit cards, adding PayPal helps you to increase sales by connecting your online store to existing Internet merchants and over 150 million PayPal accounts globally.Â You can also sign up for a PayPal debit card for instant access to funds in your business account.
The card boasts a MasterCard logo and is accepted anywhere MasterCard is accepted. The PayPal Plus credit card gives users the security, convenience and reach typical of MasterCard. In addition, the extensive rewards program allows users to earn points that can be used toward purchases, travel and entertainment necessities essential for the smooth running of the business. Twenty-four customer service is available online or with a live agent on the phone.Â In a clinch you may also be able to receive instant increase in credit, simply and quickly.Â Business owners can also manage their account and financial options including viewing account balance, payment and statements anywhere, nationally or internationally.
Many merchant accounts also enroll customers — at no extra cost – in their rewards program that lets business owners earn points for every dollar spent. Points can then be used for purchases or exchanged for vouchers that can be used towards goods or services. Â Â Merchant services place financial power and opportunity in the customer’s hands.