To Take or Not to Take

This question I see coming up quite a bit. Should you take credit cards? For my first two years I did not accept credit cards...mostly because I didn't know how and a little because I was too nervous. I had quite a few customers ask if I took credit cards those first two years. I am sure that I lost some sales because I didn't.

So, last year I took the plunge and started researching how to go about accepting credit card payments. It is SO overwhelming to just do a Google search on this topic. It's nearly impossible to just start at the first link and figure it out. I searched on a couple of forums for advice and read around online.

Some people have found great success with ProPay. I have not personally worked with them, but as I understand it you can process cards over the phone at your show in about 2 minutes. Or you can process the card when you get home (after gathering all the important information at the show) using their online terminal. There is a limit to how much you can process each month.

Another person recommended 1st American Card Service who they use and said "they have low fees, no app fees, no contract term length, no cancellation fees." I've had no experience with this vendor either.

I ended up using iPayment Merchant Services...I won't even go into how I finally ended up with them but it was the long route, I assure you. I wouldn't say that they're the easiest to use, but now that I'm used to the process it makes sense to me. I take all card information manually, at shows and online. I have a terminal at home that plugs into the phone line...I punch in the information, hit send, and off it goes. And eventually money gets deposited into my checking account.

My fee is $9.95 per month plus a percentage of sales...they take a higher percentage for American Express and the lowest fees for Discover card (Visa & Mastercard are in between) but none of them are higher than 3.5% of the sale price. I know there are better fees out there but this one is also flexible enough for me. There is no minimum amount that has to be charged each month, nor is there a long contract. In fact, I could cancel at any time with no penalties.

One important thing to remember when taking credit card information...ALWAYS get a phone number. Always. I rarely ask for a driver's license number but I do always ask for the home/billing address even when taking the card in person. Make sure to check the expiration date and get the security code (3 digit number on the back of all cards except Amex where it's 4 numbers on the front).

Accepting credit cards at craft shows made a HUGE difference in sales. It always paved the way for me to get up the nerve to finally get a shopping cart on my website. But that's a whole 'nother issue.

If you have a great merchant provider let us know! :)