Choosing the Right Credit Card Processor

Choosing a credit card processor probably isn't the most exciting part of opening a quilt shop, but it's one of those decisions that quietly impacts your business every single day. A little research upfront can save you money and headaches down the road.

When comparing processors, don't focus solely on the advertised processing rate. Be sure to ask questions like:

• Are fees based on a percentage of the sale, a per-transaction fee, or both?
• Are debit card transactions charged differently?
• Are there monthly statement fees or other hidden costs?
• How much does the equipment cost for an in-store checkout?
• How quickly are deposits made into your bank account?
• What are the cancellation terms if you decide to switch processors?

If you'll be selling both online and in-store, double-check that both systems deposit into your business bank account, not your personal account. Keeping those finances separate will make bookkeeping much easier.

One thing many shop owners don't realize is that processing rates aren't always permanent. As your sales volume grows, it's worth calling your processor to see if they'll lower your rates. Even a small reduction can add up over time.

Should You Charge Customers a Credit Card Fee?

More retailers are adding credit card surcharges, but personally, I think processing fees are simply part of the cost of doing business. Most fees average around 3%, so I'd rather build that cost into my pricing than surprise customers with an extra charge at checkout.

Customers appreciate straightforward pricing. When the price on the shelf matches the total at the register, it creates a better shopping experience and leaves a stronger impression.

At the end of the day, the goal isn't just to find the lowest processing rate. Look for a company with transparent fees, reliable service, and terms that make sense for your business today and as your quilt shop grows.