How To Effectively Increase Your Profits And Eliminate Chargebacks

Sept. 1, 2009 - PRLog -- How to effectively increase your profits and eliminate chargebacks by accepting credit cards and other forms of payment

> Increasing Profits

In our world today, every cent counts so by adding them to your bottom line is also a big help. These steps will make you increase your profit, lower your expenses and protect your business from theft.

Business in the food service industry, if you're running a restaurant point of sale system then this simple tips can greatly help you grow your business!

> Taking Checks

Checks may not come mostly from teenagers, but their still widely used especially among older customers. If you haven’t been accepting checks, start soon. There’s equipment that will scan the check as quickly as a credit card, measure them against a nationwide database of bad check writers, electronically deposit the money, and guarantee you receive your funds within a few days. In addition, the cost is typically lower than for credit cards and could add 10-15 percent to sales—possibly more if seniors make up the majority of your customers.

> Cards

Already accepting Visa and MasterCards?Do consider accepting other credit cards besides Visa and MasterCard. What about Discover and American Express? Particularly, the latter accompanies larger transactions in general. You might have felt hesitated because of the fee, but reconsider—a 1% difference may not look worthy of consideration for you, and because American Express transactions are often larger than those of other cards, you’ll make it up in gross profit. Furthermore, it helps keep your customers coming back because they know that your business is accepting all forms of credit cards.

> Researching

Many vendors think their fees are 1.69 percent plus an additional $.19 because that’s their qualified rate on a pricing program tier. Though fewer than 20 of 100 transactions receive the low qualified rate and all the rest downgrade and cost one, two, or even three percent. Researching alternate programs that offer different interchange rates could end up saving more than you think.

> Understanding Statements

You or your bookkeeper shouldn’t have to scratch your heads over a complex credit card statement that just doesn’t fit. A few companies have made extraordinary efforts to simplify these reports. You should be able to come into terms with your statement and rates within 15 minutes or less.

> Online Reports

Don’t wait for the post office to deliver a letter disputing a charge. With Internet reporting, you will know within 24 hours, allows you to aggressively defend against chargebacks. This type of quick action will increase your success rates and reduce your losses.

You or your bookkeeper shouldn’t have to scratch your heads over a complex credit card statement.

Use the Card Validation Value and Address Verification System. They are highly effective fraud screens proven to reduce losses, and when using them correctly, you can get the lowest possible discount rate.

Also, avoid by being PCI compliant. Hackers can cause you huge fines, and they can drive you out of business. Find time to read Visa’s report on noncompliant systems, so you'd always be alert.

> Reduce Chargebacks

For Internet and phone orders, implementing the “Verified by Visa” or “MasterCard Secure Code” plug-in on your web site eliminates all cardholder nonauthorization chargebacks. Liability for these chargebacks will be shifted away from you to the issuing card bank, and you qualify for the lowest discount rate available. By this simple step, you could possibly eliminate up to 80% of all chargebacks and increase your profits.

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With over 20 years of restaurant point of sale experience and helping businesses in the food-service industry nationwide increase their efficiency and bottom-line profits, the author of this article is the VP of Customer Relations at POS-For-Restaurants.com.

You may visit http://www.pos-for-restaurants.com for further understanding of how our national network of restaurant point of sale professionals can help your business achieve greater success in these difficult economic times.

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