Is Your Business Too Small To Accept Card Payments?
One of the many decisions you will have to make when setting up your small business is methods of payments. Clients can pay you by cash, cheque, bank transfer, or, of course, card payments. If you are a foreigner reading this article you will automatically assume that your business, however small, will accept card payments. A Maltese person might, surprisingly, need to stop and think about it.
Traditionally, there have been many obstacles to being able to accept cards, especially if you own a small business with limited turnover. Banks would demand a certain minimum turnover and charge un-affordable fees on every transaction. It got to a point where most micro-businesses, such as a greengrocer or ironmonger do not accept card payments.
A Practical Example
Let’s take the example of a small greengrocer that it looking to increase its revenue. If cards are not accepted, the only method of payment is cash. The business’ best opportunity to increase revenue without increasing costs is to attract a higher earning market. Made up of professionals and blue collar workers, this market is willing to pay more for healthy products. This is the market responsible for the growth in popularity of avocados and kale, amongst other products.
Finding this market is relatively simple; they live in considerable numbers across the Island. The challenge is to get them inside your store. You need to understand that the majority of these individuals do not like carrying cash around. When they do, this is usually a small amount. Now, you could be content accepting that they will only spend whatever they have in their pocket, but what if you could get more?
It is quite possible that as they are looking at your products or waiting in line to pay they see something which catches their attention. They decide to purchase it as well, until, alas, they don’t have enough cash. Going out to an ATM to withdraw more cash is a hassle, this market wants convenience, so they put the item back on the shelf, losing you an easy sale.
The Obvious Solution
Imagine that the greengrocer accepted card payments. How would the story have ended? It is simple; accepting card payments results in higher revenue for businesses, no matter their size.
The obstacles created by traditional banks, unfortunately, still exist. However, the solution comes in the form of a new breed of online banks, such as myPOS. With lower fees and faster account opening, you could apply today and start accepting card payments tomorrow!
You can choose from a range of card readers for your business in Malta or abroad. With myPOS, you get an account, a card reader and a VISA debit card. If you are a small business, this covers your entire financial operations, and you don’t even need to sign a single document.