Business Credit Card machines
Credit card machines are an essential in any pub which has a reasonable food base or in a town centre where customers find it easier to pay by credit or debit card.
It guarantees your money but takes some days to get to your account, it is extremely convenient and costs you money, customers like it, you can also do cash back with certain companies.
It’s convenience normally outweighs the costs if you are taking more than £40K per annum.
You can have an installation cost, which I consider a rip off and have refused to pay on a number of occasions.
You have the monthly rental, which can vary from around £15-£20 on to-days prices, shop around for the best deal and haggle, you might get an old fashioned look, but ignore it, a deal is a deal.
The bit where you save money is the percentage charged on credit cards, the charges for other than credit cards varies, is normally proportionate to the percentage rate.
Since writing the original of this, there are a number of hidden charges and you need to play several companies off againste each other to find out what they are, I did this, using a friendly shopkeepers records.
It appears that more money is spent on Debit Cards than Credit Cards, needless to say certain companies have increased the tariff on Debit Cards, highlighting their low rate on Credit Cards.
One of our subscribers was being charged in excess of 22p on every debit card transaction, however small, where other companies are charging around 12p.
Your kindly Bank Manager will invariably set you up with anything between 1.8-2.8%, which seems like nothing until you work out the numbers.
You might say that percentage difference is not worth bothering about.
A very sobering thought for every .5% below your existing rate per £100K you are giving £500 net profit to the bank, that equates to around £2k at least in takings.
I had two pubs a couple of years putting Â£500K per year through their PDQ machine at 2.8%, because that was the rate their friendly Bank Manager gave them in their last business, that equates £9K net profit going to the bank.
When they realised the enormity of their profit waste, they both said they were locked into the present machine for a year, I pointed out at that loss of net profit they could well afford to pay the rental on the first machine and still show a vast profit.
It is Net Profit that is being wasted, not Gross Profit.
Sadly Banks take enough money, make sure yours stays in your account.
We have a company Handepay, who is highly competitive and well worth checking out.
Contact:- Scott Masson for in depth info on this Handepay