5 Types of Businesses that are Losing Money Through Payment Processing
As a small business owner, you know there’s no shortage of fees and dues that accumulate in your books each month. While some of these costs are inescapable, such as licensing, payroll, and insurance- other monthly fees are able to be reduced or, sometimes, completely eliminated if you approach them strategically. For many types of businesses, your monthly credit card processing fees are one of the latter. Depending on your industry, there is a good chance you could stand to significantly reduce if not entirely eliminate your merchant processing fees.
Are you one of these businesses that is unnecessarily losing money each month on merchant fees? Read on to find out if your business makes the list.
Pizzerias
There’s few comfort foods people love more than pizza. As one of America’s favorite dietary staples, it’s no wonder pizza businesses are so popular. With over 75,000 pizza restaurants in the US alone and industry sales totaling over $46B, it’s safe to say that pizza restaurants are in high demand, which is a good sign for overall profit. But no matter how you slice it, the high volume of orders paired with the convenience factor- the fact that patrons are likely to swipe their card to pay for their order, especially during the dinner rush- means that pizza shop owners are taking a significant hit each month when those processing fees start to roll in. Processing fees on online orders serve to further add to these costs. The frustrating thing about this is the fact that the money allocated towards these fees could undoubtedly be put to better use in ways that directly benefit these businesses’ operations.
Bagel Shops
Bagel shops are another food-based retail business that take a hard hit when it comes to credit card processing costs. While some customers may opt to pay in cash, a majority rely on the ability to pay by debit or credit card. In fact, per recent statistics, 80% of consumers say that they prefer paying with cards over cash. Paying by card also offers the added convenience of time savings and efficiency for customers who want to grab a quick bagel and be on their way, no change needed. When you start to analyze these trends, you begin to see a clear relationship between the bagels and profits- both have a hole right in the middle.
Small Convenience Stores & Delis
If pizzerias are the dinner hot-spots, and bagel shops are the breakfast go-to, it suffices to say that delis and convenience stores are the lunch time heroes. Similarly to these other businesses, delis and small convenience stores rack up a staggering amount in monthly merchant services fees, on average what amounts to hundreds, or sometimes even thousands of dollars each month. Even for stores who’s fees range on the lower side of this number, these costs can eventually add up, putting a noticeable dent in overall profits. Consumers may not think twice about swiping their cards at these locations, but for the owners, it is anything but convenient.
Barbershops & Salons
While they may be best known for trimming hair, barbershops and salons are yet another perfect example of small businesses that could definitely serve to trim their processing costs. From booking online and paying ahead to simply swiping in person after being clipped and styled, consumers are often paying by card which means owners are paying as well. In recent months specifically, many salon patrons have even opted for foregoing cash payment altogether for the additional reason of limiting contact, and therefore lessening the spread of germs and other contagens. Salons and barbershops have taken many measures to protect the safety and wellness of their clientele and address these concerns. It only makes sense that, internally, they would take similar efforts to protect their profits while still putting the client experience first and foremost.
Many Other Small Businesses
Are you noticing a trend among these businesses? It just so happens that all of them fit into the general category of small to midsize businesses with a high volume of transactions and ticket items that generally fall under $100. This is no coincidence! In fact, this is the ideal type of business that can benefit from reducing, if not entirely eliminating, their monthly credit card processing fees. The reasoning behind this is that these types of businesses have a fee per transaction that is small enough that it won’t raise eyebrows with your customers, but significant enough that, when totaled, can cost your business hundreds, if not thousands of dollars per month.
If your business appears on this list, we at One Source Merchant Solutions want to offer a solution. With Our Cash Discount Program you can entirely eliminate your credit card processing fees while still delivering the valued services your clients have come to expect. Furthermore, we can help to streamline your operations and set you up for success with a unique combination of tools, resources, and technology that can make an impact on your bottom line. What could these potential benefits mean for your business? Contact us today to try this program entirely risk free for 30 days and see the results for yourself!