Who would have guessed that a teenager from Russia with a gift for writing malware would create enough havoc to bring a major retailer to its knees? The mastermind behind the Target security breech probably sported a face full of pimples, as he was reportedly only 17-years-old.
While credit cards are convenient, the latest retail hacking nightmare isn’t the only reason to cast a wary eye on accepting credit card payments. The silver lining behind the Target hacking story, then, just might be that it’s leading some business owners to review credit card payment practices. Interchange fees take a big bite out of a Main Street merchant’s bottom line, while enriching the big credit card companies.
The only winners are those enormous credit card companies. And how did they get that big? They grew rich from coffers flush with money derived from merchant exchange fees!
Too bad they didn’t share that largess with the rest of us. But there is a way you can claw some of that money back into your business. Make the switch to Automated Clearinghouse Payments. Note the word, ‘automated.’ That’s good news for merchants, because switching your regular customers over to ACH eliminates the bite taken out of your profits by credit card merchant fees. Another bonus is that it ensures your customers remit timely payments, too.
MasterCard, Visa and Discover are skimming a merchant’s profits, which enriches these huge enterprises. That’s bad news for the little guy. If you operate a small business, suggest to your clients they make the switch over to ACH payments. It costs them nothing, but will save you a bundle.
If you set a new client up from the get-go with ACH payments that are automatically deducted on a particular day each month, you’ll also see late pays decrease. All the way around ACH payments are a merchant’s best friend!