After you have made the sale, you want to complete the transaction as quickly and conveniently as possible. If you’re a retail store, the three common payment options are cash, check, or credit card. If you’re not accepting credit cards now, you should contact your bank’s business department and find out what processing service that they recommend. There are a few undesirable services out there that have hidden fees and high processing costs.
The total of all the transactions for each day will be processed and usually direct-deposited in your bank account within 24 to 48 hours. You’ll lose 1-1/2 to 3 percent of the transaction amount in fees, but it’s worth it to keep those customers who pay only this way. Most systems will also accept debit cards, which act like electronic checks. In today’s world, you really have to accept most credit and debit cards, or you’ll risk losing business.
When accepting checks, it’s a good idea to use a check-protection company to guarantee against losses from insufficient-funds checks. One I have used requires two phone numbers and a driver’s license number written on the face of the check to guarantee it. If the check is returned, it goes directly to the check-service company, and they fax us a notice to deduct it from our checkbook. At the end of each month, we receive a payment from them for any returned checks, plus $5 extra per check to cover any bank fees. We get paid regardless of whether they collect on the checks,
and we never hear about it again.