5 Smart Reasons To Use Passthrough In Your Company
Merchant Passthrough or Merchant Surcharge technology allows business owners to pass their merchant processing fees onto their clients. Though it definitely has its detractors, and through it’s not for every business owner’s style, it does have a slew of excellent qualities that make it worth looking into. If you are struggling as a new entrepreneur, Passthrough can be the saving grace you need to make things work for your company. Here’s why experts suggest considering it – especially if you’re a newbie to business.
- It cuts operating costs. If you are a business with very poor overhead, every little business cost makes a huge impact on whether or not you’ll make it to next month. Passthrough can cut costs on charges significantly, which in turn makes it easier to manage your cash flow and appropriate funding to areas that need it more than merchant processing does.
- It also makes accounting easier. You no longer have to worry about putting aside money to pay your merchant services company at the end of the month. The amount you charge for your products is the amount that you’ll see in your bank account. So, you end up with less guesswork every month.
- Customers don’t mind it as long as you disclose it. As long as you tell people that there’s a service fee for credit card charges, they will be alright with it. After all, they can always use cash if they want to avoid the fees – and that may even give them a better feeling of control.
- In some cases, you may not even be able to afford credit card processing without it. If your company is really suffering, this is a possibility. But, you can’t abstain from credit card processing in today’s marketplace without having serious problems with customer retention. In fact, having credit card services may end up being the only way you can get out of that situation.
- If it doesn’t jive with your customers, you can always just switch back to traditional processing. Passthrough is all about flexibility for business owners. So, if you don’t end up seeing it as a good solution to your company’s issues, you can always switch back. All it takes is a phone call!
Giving Merchant Surcharge a chance is very well worth it, especially if you are facing tough times. If you want more information on Passthrough and what it can do for you, give Red Payments a call. We are happy to help connect you with qualified professionals.