You’ve put together your class schedule and written your studio policies, but one of the most important tasks still has to be done: deciding how you will process payments. As using cash and checks has fallen by the wayside, credit cards have become the preferred form of payment. Her are some tips for secure credit card processing for your dance studio!
Why you Should Accept Credit Cards
Accepting credit cards helps ensure your studio generates as much revenue as possible. One way it does this is by making it convenient for parents to pay tuition and other fees. Paying with a credit card takes just seconds and, depending on your system, can take place almost anywhere, whether online or from a mobile phone. Parents are already using credit cards for their children’s other activities and expenses, and by accepting credit cards you make sure parents can pay the way they prefer and don’t see your studio as that one difficult business they have to deal with.
As more and more dance studios accept credit cards, it’s important that your business remains competitive. Jon Koerber, software expert for dance studios and gymnastics classes, cited that online credit card transactions increased from $2.8 billion to $4.8 billion between 2006 and 2012, and they are only set to grow even more. Credit card processing is no longer weighed down to a clunky machine – they’ve been released online and in mobile applications. As Koerber wrote in a blog post for Capterra:
“You’ll also be losing business to your competitors if you not are doing business around the clock … And all the more so if [parents] can go ahead and sign up for classes from their living room after dinner. If your competitors have online registration and payment processing but you don’t, guess which dance studio will get the new customer after hours.”
Beyond providing convenience for your clients, accepting credit cards also makes everything easier for you. All the payment information will be stored in one place, which makes it simple to view or print revenue reports and quickly access the payment history of certain customers. All the complicated tasks involved with handling and depositing funds is left to the credit card service, which leaves you more time to run your studio.
What You Need to Get Started
You first need to identify which credit card providers you want to accept. Most business accept Visa and MasterCard, while some choose to also accept American Express. Then, you need to select a merchant account service. DanceExec explained a merchant account as “a kind of bank account designed to enable your business to accept payments by debit cards or credit cards. Your merchant account establishes an agreement between you the merchant and the merchant account bank on how to settle money you receive in the form of payment card transactions.”
Make sure the merchant account service you select enables you to accept credit card payments in multiple ways – ideally in-studio, online, over the phone and via smartphones. This way, parents can have a variety of payment methods available to them and can choose the one that’s most convenient for them, wherever they are.
Once you have chosen a merchant account and bank and have been verified, you can begin accepting credit card payments. While you can track and manage credit card payments on a separate system, most major dance studio management software companies enable credit card transactions in their overall system. This is a great option because the credit card transaction program is already fully integrated into the rest of your studio’s systems, which saves you time and headaches!
If you’re accepting credit card payments, you’re dealing with sensitive financial and personal information. So, you need to make sure you’re following the highest measures for security and privacy. Make sure the merchant account service you select has a strong record of PCI, or the Payment Card Industry Data Security Standard, compliance.
Another security consideration is where the credit card payment information is stored. The information should not be kept on your computer or on servers owned by credit card transaction software that you use – instead, the data should be stored securely on an independent server.
Costs to Be Aware Of
Accepting credit card payments comes with several fees. One is gateway fees, which are the fees that merchant accounts charge each month for verifying that the credit card used in each transaction is in good standing. Other merchant account fees include a monthly fixed management fee and PCI compliance fee.
Additionally, there are small fees placed on every individual credit card transaction. These include an interchange fee, which depends on the type of credit card used, discount fees and per-transaction fees. The specific fee amounts vary from provider to provider, so make sure you compare these figures when choosing a merchant account to get the best value for your money.
Though setting up secure credit card processing requires some initial research, the benefits for your dance studio make it well worth the time.