There are over 30 million small business owners in the US—and as one of them, you have a lot on your plate. Marketing, staffing, and inventory management are just a few of the things you have to think about daily.
But if you’re like most people, there’s always something else to worry about: security. You don’t want people to find or steal your money. A debit card reader for small businesses can help.
Card readers keep your money safe by preventing fraud and theft. But if you’re still unsure if one is necessary for your business, keep reading to find out why it’s so important.
Benefits Of A Debit Card Reader For Small Business
The most obvious reason to invest in a debit card reader is to protect your business from dishonest people. If someone uses stolen information to make purchases, it can be hard for you to get paid back. A reader will help prevent this by requiring customers to enter their PIN number before the transaction is complete.
There are other benefits that a card reader can provide as well:
Consumers Like Debit Cards
Debit cards are easy to use, and there’s no danger of carrying a balance. For this reason, customers prefer them over any other payment method.
Consumers also appreciate that using a debit card doesn’t cost them anything extra in terms of fees or interest rates. They pay only what they would have paid if they had used cash instead. In contrast, credit card users pay transaction fees and interest on any outstanding balance.
Contactless Payments Are More Hygienic
When people pay with plastic instead of paper, there’s less chance that they’ll drop anything on your counter or leave behind germs when they walk away after paying. The same goes for using a mobile device to pay. It’s easier to keep your hands clean when you don’t have to reach into your pocket or purse to retrieve a card.
Customers will enjoy the convenience of being able to leave the store with their hands still clean.
Debit Card Payments Encourage Purchases
Contactless payments are a lot easier to use than cash. Instead of having to count out the right amount, you just tap your card on the terminal and go.
In short, you can lower the barrier to purchase for customers by accepting debit card payments through a contactless reader. This is great for improving your sales and boosting your small business finances.
More Secure Than Keeping Cash At Your Business
A debit card reader is a much more secure way to handle transactions than accepting cash. If you keep money in the register, it’s vulnerable to theft and damage. And if someone steals all of your cash, it’s impossible to track where it went.
With a debit card reader, though, even if someone were able to steal the device, you would still have access to your own accounts. Most importantly, the profits your business made would be secure in the bank.
Card Readers Are More Efficient
You will save time and money when you use card readers to process payments. Instead of waiting for a cashier to enter each item into their register, customers can swipe their credit or debit cards and sign on the screen at the register. This method can process more customers per hour than using cashiers, so your business will generate more revenue in less time.
More Payment Options For Customers
You can accept more payment options from customers. The best part is that you don’t have to change anything about your business; you just need a debit card reader for your smartphone.
Some of these payment options include:
Any Debit Card
It doesn’t matter if it’s MasterCard, Visa, American Express, or Discover. You can accept any type of debit card, which is great for customers who don’t have credit cards. You can also accept prepaid debit cards and gift cards at your business.
It also means that if you get paid for your services with a debit card, your funds will be in your account within 24 hours. Because of this advantage, accepting credit cards is preferable to taking personal checks.
If you have an affinity for Bitcoin or Ethereum, you can accept crypto debit cards too. Offering customers this payment option can help draw in new people who can’t use a standard credit card. If you are interested in getting paid for your work in cryptocurrency, here is some guidance.
Card Readers Make Accounting Easier
You can download transactions to your accounting software or upload them into your cloud-based accounting software. This is incredibly helpful, as it means you won’t have to go back and manually enter all the information.
Another advantage is that when it comes time for taxes, there will be far less work involved on your part. You’ll be able to export all the transactions from your card reader directly into Excel, which makes tax season much less stressful than before.
Enable The Collection Of Sales Data
You can use the data you collect from your debit card reader to do everything from analyzing sales trends to optimizing operations. For example, you can use the data to determine which products are most popular and adjust your inventory accordingly.
You may also use it to create sales reports that show what items they sold in which locations during what periods of time. This will help you see which areas of your business need additional attention or improvement.
Reduced Risk Of Fraud
One of the primary benefits of a debit card reader is that it reduces the risk of fraud. Credit card fraud is much more common than debit card fraud, so you’re less likely to experience this problem with your small business if you use a reader.
The main reason for this is that debit cards are more secure than credit cards. Debit cards are connected directly to your bank account and require your PIN number before use. This makes them safer than credit cards, which don’t require any authentication on the front end.
Drawbacks Of Debit Card Readers For Small Businesses
Debit card readers are more expensive than some other options, so you’ll have to budget for the initial investment. The cost of a reader varies depending on the manufacturer and model, but it’s usually between $50 and $100.
Although the price of a card reader is small compared with its benefits, it may be too expensive for some small businesses. Plus, there are some drawbacks that you should know before investing in a debit card reader for your business:
You’ll have to factor in transaction fees when deciding whether it’s worth your time to get a debit card reader. Some are as low as 1%, but some can be as high as 3%.
It’s also important to note that these fees will affect your profit margin. That means that even if you’re getting paid more with debit cards, those extra dollars might not be enough to make up for the higher cost of processing them.
Setup Fees For The Card Reader
As mentioned, debit card readers cost up to $100 upfront, and sometimes there’s an additional setup fee and monthly fee. However, these costs vary widely based on the type of business and services offered by individual companies. Some may not charge setup fees at all but charge hundreds per month just for access to their software.
Should You Get A Debit Card Reader?
If you’re accepting payments, a debit card reader is a good option for your business. Many customers prefer paying with their debit cards and may be more likely to come into your store if they know they’ll be able to pay that way.
Debit cards also offer some protection for both customers and businesses. If you accept payments through Square or another platform that uses debit cards, your customer’s bank can step in and help resolve any disputes or problems that arise.
When you choose a debit card reader provider, it’s important to find one that offers competitive rates for processing fees. This will help keep your costs down and ensure that you can make money from accepting debit cards instead of just accommodating customers.
Accept New Payment Methods
The bottom line is that a debit card reader for small businesses is essential. They’re easy to use, and they can help you make more money by reducing costs and increasing your customer base. If you want to accept card payments at your business, then it’s worth considering a debit card reader.
If you’re looking for more ways to attract customers and add new tech to your small business, find more tips in our technology section.