In a tight economy, small businesses are finding it increasingly necessary to offer their customers a payment card (credit/debit) option. CPAs can use these tips to educate their small business clients about payment processing:
Advise
clients to choose a technically savvy and financially stable
payments provider.
Due
to product complexities and ongoing investment in infrastructure and
security, payment systems have moved from being bank owned to
technology providers that can vary in size, depth and trust.
Consider clients’ needs and help them identify providers that
process the forms of payments (credit cards, debit cards, ACH
payments—which include direct deposits or e-checks—check services
and gift/loyalty cards) and methods (retail point-of-sale, Web,
phone, mobile, check scanner) that fit those needs.
Look
to maximize sales channel opportunities.
Help
clients “close the sale” by being accessible in all the places their
customers want to buy: over the phone, on the Web, at a trade show,
in the field, etc. Forcing customers to call or go into a store to
make the sale limits sales opportunities.
Embrace
credit cards.
Credit
cards can be more expensive to accept than cash or checks, but some
customers prefer only to use credit cards. Asking customers not to
use a credit card can mean sacrificing repeat sales. Additionally,
business-to-business (B2B) shops can pick up new customers by being
credit card friendly, and are well positioned as a first alternative
when a competitor is out of inventory.
Integrate
payments data with the accounting system.
A
best practice is integrating payments acceptance into the accounting
system. Not only can this eliminate the inaccuracy of manual data
entry, but it can also reduce days sales outstanding (DSO) and
enhance your clients’ audit and compliance positions.
Advise
clients in establishing a check payments strategy.
As
e-payments replace more and more checks, don’t lose sight of the
potential increased exposure with fraudulent checks. Converting
paper checks electronically to ACH, checks-by-phone, Web, Check 21,
and check guarantee can increase cash flow and mitigate losses.
Focus
clients on becoming PCI-compliant and scanning their PCs.
Payment
Card Industry (or PCI) compliance is a requirement of all businesses
that interact with credit or debit cards. PCI compliance ensures
that your clients are up to date on the latest best practices to
protect their business and their customers from card payment fraud.
And, just as you use antivirus software on a PC, advise clients to
use security vulnerability software that scans a PC for potential
security leaks.
Understand
the importance of end-to-end encryption technology.
End-to-end
encryption (E2EE) starts with payment capture devices, and goes all
the way to the transaction’s being authorized. E2EE prevents the
card account data from being stolen electronically, and lessens the
cost and impact to become a PCI-compliant business.
Help
your clients understand mobile payments.
This
involves more than just a smartphone that can accept a credit card
payment, or a mobile phone that replaces a credit card in making a
purchase. It’s also about delivering information and marketing
activities, such as offering coupons through an array of mobile
devices, that build customer loyalty.
—By Greg Hammermaster ( ghammermaster@sagepayments.com), president, Sage Payment Solutions.
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