Last week on the Small Business Trends Radio Show the topic was about accepting credit cards in your business.
My guest made a key point: that service businesses often do not think of accepting credit cards.
One of the biggest motivations for a service business (e.g., accountant, consultant, attorney, landscaper) to accept credit cards is to get paid faster.
My guest was Samuel Peery, an executive of ProPay. He pointed out that 24% of accounts receivables are at least 90 days old. You can quickly cut down the age of your receivables and get the money owed you, just by accepting credit cards.
Not only do you get paid faster, but your customers and clients may like the convenience of paying with credit cards, too.
Samuel suggested that when you sign up a new customer or client, you should get a credit card number and an agreement up front to charge the credit card if an invoice is not paid within 30 days.
ProPay also has a page in their website describing the benefits of accepting credit cards, for anyone who wants to learn more.
ProPay is a service that substitutes for a traditional merchant account. When a customer gives you a credit card, you either call in via phone or go online through the ProPay website to get the transaction approved. ProPay has been around for ten years.