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TIPS ON GETTING PAYMENT & KEEPING IT There are many different ways that you can choose to accept payment from your customer. Each method has its advantages, and things you need to be mindful of to prevent falling victim to fraud. Electronic Transfers Electronic transfers are the safest and cheapest type of banking transactions, but since the payment advice slip is generated by the client from his / her own PC, you should wait for the money to get into your bank account before releasing the goods. Anybody can make a piece of paper showing they paid money into your account, without actually paying anything into your account. Credit and Debit Card Payments If you want to accept Debit / Credit Cards, the bank will charge you anything up to 5% commission on the value of the sale. There also 3 rd party payment providers who compete with the major banks and may sometimes offer a better rate. In all cases compare not just the rate but also the monthly charges. You can elect NOT to accept American Express cards which is a good idea since American Express charge the highest rates in the industry. As your volume picks up there’s a great trick to force the bank to lower your rate. Asking them for a better rate doesn’t often result in them giving you a better rate but going to another bank and telling them you’re paying a lower rate than you actually are will often result in them giving you an even better rate. You don’t cancel with the first bank but tell them they are too expensive and that you got a better deal with another bank then don’t use their terminal for a few months. They will then come to you of their own accord and offer and even better rate. Playing the banks against each other is great fun and saves you money in the long run (we got our rate down to 1.1 – 1.3% by doing this exact thing). With credit cards there is a fair amount of fraud. To reduce your exposure to card fraud, insist on a chip card where the customer has to put in a pin. Customers paying by card should be present for the transaction.
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