To business owners that advertise on TV?

Question

Why don't more business accept on line checking for quick easy and 'for sure' pmt verses credit cards? I know credit cards cost like 7% for each purchase to the business owner, but on line checking is free, at least at my bank. I pay my utilities with on line checking, and buy cigarettes the same way, but most things advertised on TV doesn't offer that option, they just want my credit card number. On line checking, I can see within minutes what's been charged to me, but with a credit card I have to wait for my bill, so I don't do that anymore. If you sell and advertise online or on tv and know the answer, I'd appreciate a logical reason. Thanks

Answer 1

First off, online checking does cost the business owner. It's only free for the purchaser.

Second off, processing credit cards does not cost 7% of the purchase. If a business is paying more than 3% for online purchases, they need to renegotiate their processor contract. The fees for processing checks online are comparable to credit card fees. The difference in cost for the business will be in the added bookkeeping functions.

Though it's no cheaper for the business to process checks online than it is credit cards, I still believe every business owner should consider accepting all forms of payment possible. It's just smart business.

Brandon O'Dell
O'Dell Consulting
Restaurants/Retail/Bars
[e-mail]
[phone]
http://bodellconsulting.com

Answer 2

That's a really good question. I don't advertise on tv, just internet, but I don't accept online checking - even though my merchant service offers it, I just didn't think there was much demand.

I'll have to give it a try!