If you run a bakery, regardless of its size there are a few steps you can take when it comes to taking payment that could increase your turnover.
Accepting card payments
It might not seem to be the most obvious business to associate with accepting card payments, but when you consider the amount of money some people are prepared to spend on card this could be the best move for your business.
A popular misconception is that you can only get merchant services through your bank. In fact there are a number of providers of merchant services who will manage the process of transferring funds directly into your business bank account.
The rates that you are charged for this service are often lower with an independent payment processor because they have the ability to focus on SMEs (small and medium enterprises). SMEs are often over-charged by banks as they are given a flat rate opposed to rates dependent on the volume of transactions and turnover made. Independent providers have the buying power to negotiate lower rates which are then passed on to their customers.
Opening an Merchant account
Opening an account should be pain free with rates quoted to you over the phone. Some providers will have you set up within a matter of days.
Why accept card payments in my bakery?
The primary reason to accept card payments is that people prefer to pay with by card. Paying by card allows the customer:
- Instant access to the funds in their bank account
- Security and safety. Chip & PIN technology has helped to combat fraudulent behaviour.
- The ability to buy on impulse.
Debit card usage alone has risen fourfold in the last ten years; which is twice as much as overall spending. Payments by card are therefore fast becoming the preferred payment method for consumers.
Small businesses such as bakeries will still benefit from a card terminal. If you advertise that you accept card payments and display your card terminals on your counter top you’ll find that more and more customers will choose to pay this way. This will inevitably increase customer spending and will open up your business to a broader market.