40 Questions Blog Series: Question 17 – Should I Accept Credit Cardsand Who Should I Choose for a Credit Card Merchant?
Ok, I know I have not been diligent in pumping out more blogs for thisseries and to make up for it, I am doing a 2-fer for Question 17.In the business of getting my own work produced for up coming shows Ihave found a bit of time to read a few posts on forums regarding thehot topic of credit cards. I read at least 4-5 LONG posts with manyreaders weighing in their thoughts on the topic every year and a lotof the info is still the same. So, if this “quick” post isn'tenough info for you, please visit art fair/crafter sites (for example) such as this one -artfairinsiders.com - and craftlister.com with forums and messageboards for more opinions on the topic. Also be sure to look back onold topics – the info is VERY relevant still today!
Question 17 – Should I accept credit cards as a form of payment at shows andwho should I go with as a credit card merchant?
First, should I accept Credit cards? When it comes to serving customers –as we are still on the subject of customer service – customersexpect craft artists to have the same amenities that retail storeshave because art shows are essential retail shows. One of theseamenities is accepting credit cards. As a society, more and morepeople carry debit cards and credit cards and use them as regularforms of payment and rely less on cash or check. It is easier,faster, and tracking money couldn't be easier too. When we look atthis more in depth, think about customers at shows and what wouldthey most likely carry. For the most part, they tend to carry littlecash (unless they are budgeting their money) which tends to go forfood and maybe one or two small price items. The rest is paid forwith a card. Why? Well, people don't feel as comfortable todaycarrying -wads of money – when a simple card will suffice. Peopletend to buy more if you inform them you accept credit cards, “ohyou have a set of earrings with the pendant – I'll take it!”Another reason, show patrons are more likely to pay with a creditcard on items priced $20 or more – who has $1,200 in cash for alarge framed watercolor painting? The exception to this rule fallswith the “older” crowd because their mantra is spend what youhave, while younger generations are more apt to pay it off in time.For older folks it isn't unusual for them to pay in cash and have$300+ rolled up in their wallet/purse. This is why it is importantto accept credit cards, checks, and cash so no one is excluded.
Accepting credit cards IS NOT EXPENSIVE. Accepting credit cards opens thedoors for more cash flow and speaking from experience, it hasincreased my sales 30% or more. There have been shows where if Ididn't I wouldn't have made any money and a majority of what I makeand sell is under $20. You will need to determine, based on how manyshows you do a year, what type of machine to use – a knucklebuster, Nurit machine, cellphone with a credit card ap... Manycredit card processing companies, such as 1st NationalProcessing offers help in this area. In most cases the only fees youhave is the machine – depending on what you go with , the bank fees– usually 2-4% of each transaction, and a monthly fee. A monthlyfee can vary from company to company, but can run from $8-$35 amonth.
Now, onto the second part – who should I go with for my credit cardprocessing company. I cannot stress enough that you MUST do yourhomework on this. Many folks who know nothing about credit cardprocessing end up going with their bank and find out their fees areoutrageous and do not work with small business such as craft artists.Some banks might offer a good deal at first, but after awhile theycan change the rules – up the fees, customer service slacks, etc.The best place to look is at art and craft business magazines such asCraft Reports, Sunshine Artists and regional art show publications.The companies who advertise in the publications are FOR THE ARTIST,not big companies and have experience WORKING WITH the needs ofartists. Two of the biggest ones I know of is 1stNational Processing and Propay, but there are many others that offergreat perks. Deciding on which one to go with will fall on readingthe fine print, reading reviews about what others think about thecompanies you are interested in, and your budget.
I have been a customer of 1st National Processing for about 5years now and have nothing but praise for them. They are reputable,I talk to live people 24-7 when and if I have a question, offer alarge selection of credit card machines (with rent to own options),payment options, as well as info on choosing a credit card company.If you do go with them, let them know I sent you! They also have agreat referral program. However, I have heard a lot of praises fromPropay and others as well. It all depends on what your needs are.
Final thoughts. If you are new at selling at shows, don't rush out to geta credit card machine because you may find out doing shows isn't foryou. You may find dealing with the public or setting up and breakingdown may be too much, plus the costs of display furniture andmaterials and so on is what you should focus on and if you like doingshows, only then should you entertain taking the next step. Takereviews with a grain of salt. Some people have a bad experience witha credit card processing company because they never bothered readingthe fine print and learn the hard way of why their fees are so highand can't get out of their contract. In other words it isn't alwaysthe companies fault – there are two sides to each story. Openingthe door for accepting credit cards at shows opens the door foraccepting credit card orders year around – great for commissionwork, people who end up being collectors of your work and cannot getto your shows, and more.
I hope this topic has helped some of you whether you are thinking aboutaccepting credit cards for the first time or have been acceptingcredit cards, but think it is time to look for a new processingcompany. Again, if you need more info, the info is out there andmany of your peers are happy to offer their two cents. The next 40question blog post will deal with handling problem customers andneighboring artists. Have a good weekend and sell sell sell! -Michelle Sholund www.quickcraftartisttips.blogspot.com
Comments
Finally, I agree that everyone will have to become PCI compliant IF their transactions go through more than one electronic network. My provider has a complete, end-to-end network and they handle being certified - I don't have to, and I'm not paying any additional fees either monthly or yearly.
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