Stop being saddled with card charges
Dear Biz
The support and advice you have given me since I opened Flat Planet Cycles has been tremendous.
I’ve had customers from all over the country, on top of the returning local clients, after you featured my bike shop and our restorations, repairs and re-cycles so thank you. It’s been a great boost to my business.
My expertise lies in restoring and fixing the bikes.
I didn’t become an expert in finances the day I opened my shop in Cambridge and it does seem a real minefield.
For smaller jobs, people like to pay for in cash. But for larger projects or bigger purchases, they want other options. I don’t take cheques for all of the reasons you’d think but clients can pay by card. And that’s all been OK.
However, I’ve seen stuff in the news about card fees and charges for retailers going up and I wanted to know what the best option is for a small business like mine.
I don’t have the clout of a big retailer when it comes to pushing back on these things, so I’d appreciate your advice. Mark Leak, by email
Biz Replies
It’s great to hear business is going well, Mark, and that our readers have been so supportive.
On card payments, you aren’t alone in being concerned. The Payment Systems Regulator has announced it is carrying out a review into how competition works in this area, as well as examining the fees shops like yours have to pay. There are a few things you can think about, though.
First of all, since January 2015, receiving funds from all debit or credit cards was made quicker so check your provider offers that.
And you need to be clear on exactly what the charges are and if there are better options out there – for instance, Visa, Mastercard and American Express charge different commission rates.
Also, try comparing deals. Cardswitcher.co.uk says it saves money for more than 65% of SMEs who ask it for quotes.
Like most things, it’s probably worth shopping around.