Make More-Keep More

by Wayne Akey

Published on this site: September 15th, 2006 - See more articles from this month

One of the challenges business owners face is how do I make more money?

Here's one way to make more and keep more:

How do people pay you? If you are like many businesses you take credit cards or use a third party like PayPal. Both of those options typically cost you close to 3% of the sale amount. Certainly taking credit cards is an important and viable payment option but what about those consumers who don't have a credit card or are at their limit?

Why not look at taking their check payment by phone or web? Most consumers have a checking or savings account that you can debit electronically for payment. You will gain customers by offering an alternative payment option
and make more money.

Here's why:

Typically a check by phone might cost .35 or less with No percentage of the transaction. Look at the example of a $100 sale. For a credit card you will pay close to $3.00 for this transaction as opposed to .35 for a check by phone or web. Why is the credit card so much more? A credit card transaction "grabs" the $ and holds them for you to be paid meaning you WILL get the money. A check by phone transaction may be "rejected" because the customer may not have the requisite funds or the account has been closed. Typically the rejection rate may be 1-2% of the transactions you take in. In many cases you can automatically recollect these payments.

So you have a simple to implement tool to increase the number of customers
you have and keep more of the money you bring in. For more info visit www.ach-payments.com

Wayne Akey - has helped 100's of businesses reduce costs and increase efficiency. visit http://www.ach-payments.com for more info and a free ebook on ACH processing