Credit Card Processing
You need to take credit cards.
Accepting credit cards is vital if you are going to operate a limousine service. The trouble is, rates charged by credit card processors can be deceiving. The section is designed to help you, the limousine entrepreneur, get an understanding of how the system works and retain more of each dollar earned.
As Tom Mazza, the leading limousine industry consultant points out, “A great rate of 1.7 percent can, in actuality, be four or even five percent after factoring in various set-up charges and per-transaction fees.” Mr. Mazza also identifies why limousine operators have a difficult time getting low processing fees, including: Many operators are home-based, a high number of limousine businesses close yearly and a large number of transactions done over the phone.
Don't Let Credit Card Fees Take a Big Bite Out of Profits by Tom Mazza
Time to Get Techno Savvy by Neil Weiss (see Swipe to Save on Credit Card Fees)
How the process works
StartUpNation.com has a Webinar (on-line seminar) that explains the benefits of accepting credit cards and helpful tips on setting up a merchant account. If you want an in depth explanation of how the whole credit card processing system works, then check out Credit Card 101 from Shift4 a leading developer of enterprise payment solutions.
What you will need to set up a Merchant Account:
Getting your information together ahead of time will ease your merchant account application process. Here's what you may or may not (depending on the provider) need in order to obtain your merchant account:
Business checking account (some providers set you up with one)
A copy of a voided check (if you use your own business checking account for funds to be deposited in)
Articles of incorporation, business license or reseller license. (A 'Certificate of Assumed Name' from your county Register of Deeds office may be all that is required. These only cost around $8.) The purpose of this is to prove you are a legitimate business.
Pictures of business office and location (this extra step can save you money in credit card processing costs)
Have a web site (if you want real-time processing)
Photocopy of your return policy information
Provide trade references
Photocopy of recent tax returns (may or may not be needed depending on monthly sales volume you expect through your merchant account)
Site inspection (have a photographer come in and take pictures of your inventory). Only a handful of providers still require this.
A photocopy of your drivers license
Things to look for when comparing processors:
Real Time Solution Price
Gateway Fee Costs
Statement Fees
Monthly Minimums
Discount Rate
Transaction Fees/Discount Rates
Tech Support Fees
24/7 Customer Service
Credit Card Terminal Costs
Getting a car adapter or battery-operated card swipe with thermal printers
Companies that cater to limousine companies:
NOVA/CMA Credit Card Processing
Bank of America
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