28 May Sales Tax and Accepting Customer Payments
According to industry experts, less than 23 percent of all point-of-sale transactions are made with cash. As more and more customers choose to do business with their credit and debit cards, smart merchants are looking at ways to make that payment experience even easier for their customers. Credit card processing for both large and small businesses involves not only utilizing the most up-to-date equipment, but also analyzing various merchant accounts to find one that offers the features needed most by the business.
As recent rules have been established regarding collection of sales tax through online sales, many merchants have found themselves scrambling to upgrade their equipment in order to meet the credit card processing demands of customers. This has been especially true of those businesses seeking merchant accounts that also allow them to have equipment available for mobile payment processing. In today’s world, it’s not just those merchants selling at fairs and festivals who need mobile payment processing capabilities. More and more service businesses, such as handyman services, auto repair businesses and taxi drivers, need the convenience of this service in order to attract and keep customers.
Mobile Processing Features
With so many mobile credit card processors from which to choose, merchants need to examine several carefully before making a final selection. Some of the most important features include the amount they will be charged for monthly as well as individual transaction fees, the compatibility of the payment processing equipment with the user’s mobile devices, and if it offers the ability to calculate sales tax on a variety of purchases.
Weighing the Options
Before making a final decision, business owners should determine if the fees they will incur for mobile payment processing are worth the cost. While all businesses need POS equipment that will allow them to accurately calculate sales tax, not all will necessarily need the additional equipment for mobile processing. This is especially important for merchants who may travel to different states in order to sell at festivals and fairs. The equipment they use for payment processing must be enabled to accurately calculate sales tax from state to state, which can sometimes create problems.
Collecting sales tax when accepting customer payments is usually taken for granted by customers. However, to keep it that way, merchants must make sure they choose the best equipment that lets them handle this part of the transaction as accurately as possible.