In an article on MasterCard Biz, Carol Roth writes, “If you try to avoid merchant processing fees, you risk antagonizing prospective buyers and losing opportunities.”
If you limit payment options for customers, you run a real risk of losing customers. In her article, Roth uses an example of a graphic designer who preferred to be paid by check, even though clients wanted to pay online using credit cards.
“A year later, the designer raised her hourly rate – doubled it, in fact. My colleague thought the rate was fair because of the designer’s great work (but certainly not the deal it used to be),” Roth said. “My colleague almost fell off her chair when the designer again pushed back about online payment because of the processing fees. While my colleague didn’t mind the higher price, she didn’t want her own business to be disrupted by having to do the paperwork, and after a conversation with the designer, started looking for other designers to work with.”
In addition to losing customers, you can run the risk of not being able to close deals. If you don’t provide your customers with easy, hassle free ways to pay – they will likely seek out other vendors that do offer more convenient ways to pay for the services they need.
Do yourself, and your business, a favor and offer prospective customers and existing customers easy ways to pay you. Your customers will appreciate it and, in return, are more likely to become repeat customers.