DEBIT/ATM Cards

Retailers, restaurants and nightclub owners unburden your credit card machines and watch your profits rise!

Recently in Canada, cash has been replaced as the preferred form of retail payment. The United States will think to follow this trend; studies say as well as their customers will be using DEBIT/ATM cards more often than any other form of retail payment.

With the up coming credit crunch, the credit limits of card holders are being lowered by the credit card companies. Much more customers will be changing their retail purchasing practice from credit cards to debit/ATM cards that look alike. At this moment there are currently 300,000.000 debit cardholders in the United States out of which for 80,000,000 card holders these cards are the only cards have. Each year an extra 160,000,000 new debit cards are expected to be issued.

Many retailers do not succeed to take into account that while they process debit/ATM cards with their credit card machines, they are being charged with not only the regular charges but an extra fifty cents or more flat fee, for processing these virtually risk free cards. These additional charges may cost to a considerably higher percentage of the profits on small ticket sales as well as on some transactions for some items even result in losses.

Thousands of independent operators and lot of national chains have been quietly changing over to a new method to process all of their cards to offset this trend. One which is not only got rid of those charges but actually make money on every transaction. For most small ticket retailers these new system are becoming the rule rather than the exception in Canada.

For any business that accepts credit cards as a mode of payment, a business cash advance (obtained through credit card factoring) is a serious working capital financing tool that is frequently overlooked as I noted in an earlier business loan article. Even flourishing businesses regularly need more working capital than they can lend from a bank. The opportunity to reduce their credit card processing costs at the same time that they obtain a business cash advance via credit card factoring is the important thing that is even more overlooked by many business owners.

Allowing merchants to keep prices low, Cashless ATM systems allow them to process these cards without any cost to their business. As debit cards become more and more trendy this will represent a gung ho benefit over competitors who will offer an ever increasing percentage of their profit margins to the credit card companies.

A cashless ATM's permits the merchant to detain a surcharge or service fee on each transaction in addition to these substantial savings. The average ATM in the United States show a profit of a little over twenty thousand dollars a year says a study by AT&T Global

Nowadays there are numerous manufacturers producing cashless ATM systems that were designed according to the need of the modern retail operation in mind. They do not require the extra expense of a devoted phone line as well as the capital investment is much lesser than those of the big cash machines.

The merchants that find the most cost effectual solutions to these new trends will prosper where others fail in the currant credit crunch which will have long reaching effects on the retail business model.

 

Setup a credit card processing merchant accounts to accept credit cards today!