Do you accept credit cards?

[Michelle Pajak-Reynolds]

Hi All,

An eMERGE member asked me to start a discussion regarding accepting credit cards at shows.  They've "done business on a hand shake for years, surprising never been burned". They're gearing up to participate in several very prestigious shows and they're interested in adding credit cards to their list of payment options.  As we all know, credit cards are the norm for the bulk of business these days and accepting them can significantly increase sales, especially the impulse buy.

To help our fellow Crafthausers out, I was wondering how all of you handle credit card sales, especially when you're traveling at shows.  Which cards are you accepting?  Do you have a terminal?  Are you using a payment service like Paypal etc?  Which company or bank do you use?  Has anyone tried using their smart phones to process transactions?  How's adding a credit card payment option working out for your business?

Thanks,

Michelle

[Kim M. Baxter]

I am going to jump in here with my experience. Do your research. Within the last few years of publicized security breaches the card processers have changed the way you do business. They want to make sure you are compliant, and secure. Knuckle busters are going way of the dodo as some credit cards no longer have raised numbers on them. Electronic processing is the way to go. I have a portable terminal set up as "store & forward”. I can run sales, print receipts, and it stores the information. When I get home I just plug it into my phone line and it sends all the transactions in at once. The downside to this is you don't find out if a card is bad until this time. But if you are vigilant during the sale that will rarely happen. I only had a card declined once. Because I collected their phone number at the sale, I was able to contact the customer and arrange for another type of payment. The upside is you don't have to worry about finding a signal or dead zones to run a sale. If you are worried about a specific sale you can always call your merchant processer and get verification over the phone.

The company I use is 1st National Processing. They are willing to work with artists and uneven show cycles. But, do your homework, so you know what you are getting into. The Crafts Report magazine has ads for companies that seek out the business of artists. One size does not fit all. Don't just look at percentages for what they take but also swipe fees, batch fees, statement fees, PCI compliance fees and so on. Do you have to commit for more than a year? What if you have no sales for the month, how much do they still take out of your account for that month? If you buy your machine through them is it locked, or can you move on to another processing company and have it reprogrammed? Get everything up front in writing.

As far as cards, you are always set up for MC, Visa, and Discover. I also take American Express, but really don't find it worth it. 1NP has me set up so I only have to pay AE that month if I process a charge. I don't have to pay AE monthly just for the privilege of taking their card. If you are going high end, it might be worth taking AE.

I have been doing local juried shows for the last 4 years. After the first year of selling, I knew that I had to accept credit cards. There is nothing like the feeling of losing a sale because you only take cash or check. Did sales increase? Heck yes, by 30% the first year I was accepting them. This year, Credit cards have accounted for up to 75% of sales transactions during a show.

[Amy Crawley]

I have taken credit cards for several years. When I started doing small local shows, I could see that I was losing some sales because I didn't take credit cards. Like Kim mentioned, some people find it easier to pull out their credit card for small or impulse purchases that paying with cash. At many shows, customers/buyers almost expect that artists/sellers will accept credit cards. Accepting credit cards has also been beneficial for taking wholesale orders.

I use TeaMac for my credit card processing. Their fees might be a little higher than some larger companies, but I enjoy the personal service, especially talking to the owner of the company when I've had questions. They are courteous and prompt in returning calls if you don't get them straight away.

I still use a knuckle-buster because the number of sales I process doesn't warrant a more advanced system (and paying more fees, etc.) So as Kim said, do your research to determine what system meets your needs.

The compliance stuff was a bit tedious but it is the way things are going. Better safe than sorry, as they say. I take MC and Visa which seems to be the standard. I can also start taking Discover this year without having to deal with separate processing.

[Julie M.]

There is nothing like losing a sale because YOU (the seller) could not accommodate the buyer in this crucial aspcet. Talk about 2 unhappy people here. This Happened to me once, but will never happen again. I definitely recommend doing this. In Europe we work with eurocheque cards, similar to debit cards, any restaurant will take those or the usualcredit cards right in front of you on a mobile device. No doubt, accepting cards is a necessity and well worth the investment many times over. the fees are nothing in comparison to a sale made and a happy customer walking away with your piece.

[Glen Guarino]

Someone referred http://artistcreditcardlady.com/ I'm waiting for a reply.

[Glen Guarino]

Still waiting for a reply from http://artistcreditcardlady.com to gather information.

[Rickson]

Hi,

I only take credit cards online through Paypal, and do very well without a terminal at art and craft shows. However I am a very confident sales person, so once people have made a decision and ask if I take credit cards, I answer 'no, but there is a TD Bank on the corner, and I will hold the item for you until you return.' So I HAVE to know where there is a cash machine at shows. I have NEVER had someone decide not to purchase an item because I didn't have a terminal. However, I agree with others that it is very important to take credit cards, I may choose to as my business grows. I would not do American Express as I hear they charge more, and many people except that artists often don't take them.

I found this online. Can't vouch for it personally but looks very interesting.
http://www.innerfence.com/apps/credit-card-terminal
http://money.cnn.com/2010/02/03/smallbusiness/iphone_credit_card/in...

Rickson