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How PR Helps Fiercely Competitive Managers
Fiercely combative business, non-profit and association managers use every PR weapon they can lay their hands on. Which means they employ strategic, rapid-fire print and broadcast tactics every day of their business lives.
Still, many...
How to Prepare your Mind/Body to Give Great Speeches
Sure you have catecholamines – all speakers do. (including Sir Winston Churchill and Presidents Kennedy, Carter, and Reagan.) Those are the chemicals that make you sweat, make your heart beat fast and make your hands shake. Get rid of those...
Lease-Option Caution Signal
Why are real estate investors having so much success offering "rent to own" homes? Lease-options offer home ownership opportunities to folks with little cash and not so hot credit. Oh boy, there are plenty of those around. Both parties in a...
THAT'S ONE NEAT TRICK! TURNING COMPLAINERS INTO LOYAL CUSTOMERS
No matter what business you're in, it never fails. Every so often, you get one of those customers that seems to make an effort to find something to complain about. Maybe they're unhappy with your customer service, accuse you of selling faulty...
The Truth About Doublers
In 1919 Charles Ponzi invited business men and women to invest in his business and promised to double their money. Returns were guaranteed. Charles Ponzi recruited new investors and used their funds to pay earlier investors. Unsustainable,...
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Don't Play Debit Card Roulette
In a highly competitive economy, there is no sense in gambling with your payment processing options; businesses need every advantage to win in today’s global marketplace. Accepting payments through customer debit cards increases the odds that the customer who favors this particular payment option will be happy and continually return.
There are two forms of debit card transactions and every merchant should have both.
1. PIN Based Debit 2. Signature Based Debit
PIN based debit is also called “online debit” because the transaction is conveyed electronically at the point of sale. The customer confirms the sale by keying in their personal identification number (PIN), and the funds are immediately captured through a nationwide EFT network from the customer’s bank account. The funds are deposited into the merchant’s account in 2-3 business days for a nominal per item fee.
The service is much more cost effective than credit card transactions, and PIN based debit card use is becoming an extremely popular option because of its safety and security. People who use this option don’t have to carry around a lot of cash, and they get to see the details of their transactions in their bank statements. The default on your point-of-sale device should be set to PIN based.
However, if a customer prefers, there is signature-based debit also called “offline debit” and this is another well-liked payment option. The customer uses their Mastercard or Visa Check Card just like a credit card. The card is
swiped and the point of sale device gives a draft for the customer to sign. The funds are transferred to the merchant’s bank account. Discount rates apply with this option, as well as a small transaction fee. Chargebacks are also possible. Many young people are using these cards because it gives them the convenience and clout of a credit card. They can also be used to purchase over the Internet. If a merchant can accept credit cards, they can usually accept signature-based debit cards.
Riding the Wave
Even the Federal government is singing the praises of debit card use for consumers. Please see the consumer guide: “Are You Riding the Debit Card Wave?”
Debit cards are seen as safer than cash and more convenient than checks. So make room next to your cash register for a debit terminal, PIN pad and printer, and reduce the risk that a customer may not have the right payment option when the impulse to buy is upon them.
There’s virtually no risk in accepting PIN based-debit card payments, so make sure it’s an option at your cash register. It’s a sure thing!
About the Author
Rick David writes for a Merchant Newsletter @ Merchant America. He also writes a humor column called,
"Don't Laugh It Could Happen To You" for http://sandiego.merchantamerica.com.
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