Taking Plastic

Should you take credit cards or not? It is a simple question without a simple answer.

While virtually everyone in the retail world understands the importance of credit cards to their business, many merchants say that they are unsure whether the benefits of credit-card transactions outweigh the costs.

On one hand, allowing purchases to be made by credit card will provide a convenience to your clients and usually add more to the total purchase. Numerous independent studies show that when consumers use a credit card, they purchase more products then when they pay with cash or by check. It can also make it easier for a grooming salon to not accept checks, which come with their own number of concerns, including bounced and otherwise returned checks.

On the other hand, the cost of credit card transactions can be quite expensive, ranging up to seven percent of the total bill. For groomers looking to offer their clients the best prices, those fees can mean the difference between profit and loss; and more importantly, between staying in business and closing down the shop.

So what should a groomer do? The first thing is to talk to their clients to see what is the best method of payment for them. Some may be okay with cash or a check; others may welcome the opportunity to pay by credit card. Afterward, the groomer must determine whether it makes sense to start taking plastic.

If you decide to go this route, you will need to figure out which cards to take. Not all charge the same fees and not all offer the same benefits to the consumer and the merchant. Educating yourself on these cards is vital and can, over time, lead to dramatic savings.

But maybe credit cards are not right for you. In that case, groomers must explain to their client base why they insist on cash only or cash and checks. The most important point may be the fact that they can charge the clients less by eliminating the plastic option.

The decision to allow plastic payments or not is up to you. Clearly, arguments can be made for both sides. Now groomers have to determine which side pays the most.