If you own a retail business, you have probably been approached by several sales representatives trying to sell you a Gift Card or Loyalty Card Program. Whether it’s an independent office, a standalone Gift Card Provider, or your current credit card processor, it’s probably happened at least once to you.

Moreover, you were probably really interested in adding this kind of program, because many of the benefits are really transparent, and it’s an easy way to build your brand. But, they probably told you how much it would cost you, and you found it hard to pull the trigger because you weren’t sure that this kind of program would increase your revenue enough to justify the cost, right?

Gift and Loyalty Programs are Incredibly Effective

The benefits of gift and loyalty programs are so powerful. If you make a few assumptions, the validity of which have been shown over and over again in independent studies, and crunch some numbers, it’s really easy to see how a gift or loyalty program will pay for itself and more every single month

Increase your average transaction size, get customers to come in more often, reduce attrition and “lost opportunities” associated with your customers not shopping as often. Loyalty customers spend about 20% more than there counterparts, and their average transaction size is 15%-20% higher. Also, people are 70% more likely to tell their friends about your business if they are loyalty customers. It’s not hard to see how utilizing a program like this will increase revenue and build your brand.

A merchant account is something that is necessary if a business wishes to accept credit and debit card payments from its customers. When a customer makes a transaction using a non-cash method, the proceeds are sent to a merchant processor. Each day, the credit card processor settles the accounts and remits payment to each merchant account holder. Today’s businesses would be far less effective if not for the opportunity to collect payments from their customers through the use of credit and debit cards.

How a Merchant Service Provider Gets New Customers

Companies that provide merchant service accounts have a few different ways of marketing their services. An authorized agent for a bank that has an established relationship with Visa or Mastercard acts as the liaison between the new merchant signing up for services and the credit card companies. He or she is the person who will review the application from the new merchant, confirm information that is listed on it, and approve or deny an account within approximately 1 or 2 business days.

A processing agent for one of the major credit card companies may directly market the company’s services to new merchants. This is usually done by direct mail, telesales, or face to face.

Different Types of Merchant Accounts

Business owners signing up for a new merchant account have three options and should choose the one that best fits his or her model of business. A retail business who conducts business in a physical location where its customers come to purchase goods or services would be best suited by a traditional merchant account.

Companies that conduct business online should apply for an Internet merchant account. Without one, its customers would have no way of paying for their merchandise other than mailing in a payment.

Businesses who work with customers outside of their own country would be best served by an offshore account. This type of merchant account has the advantage of converting currency back to that of the merchant.

The high-risk merchant account is the final type of account available for businesses to collect credit card payments from customers. The travel industry is one example of a business model that needs a high-risk account.

Things to Consider Before Registering with a Merchant Service Provider

New business owners need to be especially savvy and make sure that they understand all fees which are being charged for the ability to have a merchant account. Some providers charge fees when customers cancel an order, charge-back fees and high monthly service fees, while others do not. It is up to the customer to investigate every possible merchant service provider with the Better Business Bureau before making a final decision on who will get their business.

If you’re opening up your first business, the chances are you are trying to sell some kind of a product. In this day and age, just about everyone carries a card around rather than hard cash, and it is for this reason that acquiring various forms of credit card processing equipment is so essential.

It should not be surprising that along with the rise of cards in place of currency, multiple institutions have also sprung up to meet the needs of the people. All too often, we see specific companies that accept certain cards and yet deny others. What these companies don’t seem to realize is that they are very possibly losing customers as a result of their inability to cater to all potential customers.

A quality business will recognize the worth of each and every customer, and as such will make sure that they have every credit card processing tool available at their disposal. Don’t let yourself lose a significant amount of customers just because you do not accept one form of a card. Not only will you invoke the ire of customers, but you will also flat out lose a sale – and if you are an experienced businessperson, then you already know that every sale counts.

Look into the various forms of credit card processing today. As a result of our ever-growing obsession with technology, credit card readers are becoming increasingly available, and as a result are becoming increasingly cheap. In this day and age, there is literally no excuse to not have a handy processor – even the smallest of businesses are toting them around!

One final topic has not yet been addressed, and it lies in the enhanced security of your business. Prior to credit cards, potential thieves or burglars would make a large amount of money from robbing a store. Again, thanks to the electronic era, the vast majority of currency has been converted to plastic cards. As a result of reduced amounts of hard cash in the registers, crooks have far less of an incentive to prey on your business – why would they risk their life behind bars for a mere two-hundred dollars?

Do a little shopping around for a credit card reader today. You will definitely be impressed with how easy and affordable it is to pick one of these devices up. The reasons for such a device are all too clear: Your business will be safer from potential thieves, you’ll attract more customers, and it will even be easier on your own record keeping. Getting one of these machines is definitely worth the time, money and effort, so get going today, and who knows, you might even expand your customer base!

One industry that we see a lot of applications from is the restaurant industry. All different kinds of restaurants apply for funding with us.  Our clients tell us that they have a particularly hard time getting approved for a business loan through their local banks.  They tell us that they were not able to qualify for a traditional small business loan due mostly to a combination of their industry type and their length of time in business.  Banks generally like to see restaurants in business for at least 3 years before they would qualify for a business loan.

Restaurant Business Loan Alternative Available

With our merchant cash advance programs, your restaurant is way more likely to get approved for funding.  Since these programs are structured as a purchase and sale of future receivables, personal credit and length of time in business are not weighed in to our underwriting as heavily as they would at a bank.  All you have to do is show us that you can generate the receivables you are selling.

Our application process is fast and easy.  As long as you have credit card transactions to settle at least 10 – 12 times per month and you are not currently in an open bankruptcy, you are well on your way to qualifying.  Having no credit or even having bad credit will not necessarily prevent you from getting approved.

Fill out our easy “get started” form by clicking the green button at the top-right of your screen to speak with a representative who will walk you through our programs and let you know what you may qualify for.

We’d like to announce the launch of our forums.  We hope people will utilize this part of our site to discuss and share information and experiences regarding anything business-related, including business loans and credit card processing.