How Hardware Stores Can Build Better Payments
And This is How YOU Can Take Advantage
When running a retail store, you know that payments are vital to keeping your business running. But did you know that not all payment processing technology is made the same?
Hardware stores are unique in that transactions range from less than a dollar for miscellaneous parts to thousands for specialty tools. This means that the amount you pay per customer transaction also varies widely. There are steps that hardware store owners can take to get the most out of their payment processing; here’s what you need to know.
Know What You Pay When You Sell
Every time a customer buys an item using a credit or debit card, you have to pay both the card brand (such as Visa or MasterCard) and the payment processor a piece. Some payment processors charge a flat rate per transaction, like 3% plus 15¢. So, for a $3 charge you end up paying out $0.24, while for a $300 charge you would pay $9.15.
When choosing a payment processor, you want to keep your average ticket price in mind. Instead of a flat rate processor, a subscription based model may work best for you. With a subscription model, you pay a low monthly rate and pay the direct card costs of processing without any markup. If your average monthly volume is more than $7,500, a subscription payment processor will pay off for your hardware store.
Take Advantage of Payment Technology Features
Your merchant services provider offers much more than just payment processing. Every time you take a payment from a customer, there’s a host of data that comes along with it. You can build loyalty programs based on repeat customers, set up an online store, and even integrate into your inventory management system to identify trends or losses.
As you choose a payment processing provider, find out what data and reporting you have access to. You’ll be able to plan promotions and sales that are aligned with your customers and you’ll be able to make better supply estimates in the future. Consider the possibilities of ordering inventory around knowing which lawnmowers will sell the best next spring or learning what time of year your customers are most likely to tackle a roofing project.
Make Payments Simple for Your Customers
Customers want to be able to pay quickly and securely. Make sure your payment hardware is keeping up with your hardware store. Give customers the option to pay with their mobile wallet like Apple Pay and to receive receipts via text or email.
In addition, take the necessary steps to upgrade your security and prevent a data leak. Your payment processor will be able to help you become PCI compliant and secure your payment data. You’ll save money in the long run and keep you and your customers’ data safe.
As a business owner, you are always reviewing your operations to make the best decisions for your business. Don’t let payment processing fall to the side. If you want to find out if a subscription priced merchant services provider can save you money while providing better service and technology, sign up for a consultation with Fattmerchant.