Some stores have a minimum amount that their customers must spend on a credit card before they will allow them to pay for a purchase with a credit card. Some stores set their minimum at $5, and other stores set their minimums at a much higher amount. The reason that some companies do that is because of credit card processing fees. The processing fees can be high if the company has an expensive merchant accounts provider. Business owners have to conduct business in a way that is positive for the customers and for the business. Selecting the appropriate merchant accounts is important.
Minimums Sometimes Lose Customers
The problem with setting a minimum transaction fee is that some customers will be put off by it. Those customers may not have enough cash on their cards to pull out at the ATM. Therefore, they may need to use the funds that are on the card. An example of such a situation is a customer who wants to buy a bottle of soda for $3. That customer cannot buy the soda if the merchant sets a $5 minimum transaction fee. He or she may leave the store and find a merchant who does not have a minimum transaction fee in place. The likelihood of the customer returning after leaving under those circumstances is slim.
Choosing the Right Merchant Accounts
A business owner can avoid losing customers by selecting the right merchant account from the very beginning. Not all merchant accounts charge fees for every single transaction that the store accepts. The best way to ensure that the business has the best merchant account is to conduct research on several merchant account providers. The merchant will want to pay attention to several aspects of the business. Consumer reviews, fees and benefits are three elements that the person will want to review.
How to Stop Setting a Minimum
The business owner can avoid setting a minimum by finding a credit card processing company that offers reduced fees for its services. The business can make up for the loss of credit card processing fees by avoiding some other fees that providers charge. Some merchant account providers charge their clients monthly fees. A business owner can make up for the processing fees by finding a provider that has no monthly fees. Comparison sites are plentiful, and they can help a business to grow by providing services that their customers love.