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To Credit or NOT to Credit?

To Credit or NOT to Credit?
By Leel Michelle

During our current pandemic, businesses are struggling with the multitude of opening and closing guidelines and restrictions. Many business owners are looking for ways to cut expenses to get them through the storm. Whether it’s my “Clean Club Memberhship” or other tips I have shared on how to make your business more successful, I am here to tell you why you should keep those credit cards processing & how to keep your employees happy at little cost to you!

Many grooming salons still do not use credit cards as a means of payment. All I can think of when I hear this is all the lost revenue that business has been forsaken due to this one single decision. In my findings and according to research by BAI Research and Hitachi Consulting on Consumer Payment Preferences, 41 percent of shoppers have cut down on their use of cash, while 97 percent of respondents are turning to credit and debit payments instead. Everyone in the United States, including business owners, have at least one credit card in their wallet. As the younger generations mature with their electronic payment habits (Pay Pal, Venmo, Apple) so do their preference for shopping and or avoiding certain businesses that do not cater to their shopping habits. Every year the amount of e commerce taking over traditional brick and mortar shopping increases in the double digits. The current pandemic has shown as much as 90% growth in e-commerce (electronic) shopping among some of the largest online retailers. Shoppers that may have scoffed at the thought of shopping online were suddenly forced to do so in order to get the supplies they needed for their family. For Jeff Bezos that means an even more luxurious apartment in “The Big Apple” but what does that mean for the rest of us? For small businesses that means we need to get knee deep in e-commerce and electronic payment systems even if it’s tedious and makes us a little uncomfortable.

If you have to make cuts to your operation; make it in other ways that won’t affect your bottom line. Credit card processing is NOT the way to cut your expenses when so many people are relying on their credit cards to make ends meet. In fact, if you want to make your employees happy by giving them a raise you don’t have to pay for… read on!

We all know how much Pet Groomers love their tips! How about giving them a raise with little time or expense to you? How do you pull this off you say? Call your credit card processor and insist they add a “tip line” to your credit card processing receipt! If you want to go a step further…have your credit card processor add a tip line AND show the formula for a 10/20/30 % tip to the bottom of the receipt/monitor as well. When your clients are shown a tip line and the math is done for them.

They are more likely to tip around 30% more than if they had only tipped in cash! Your employees will be so happy with the increase in income from their tips, and your clients will be happy they can use their debit/credit cards instead of having to get cash every time they visit your business. Does it cost more you ask? Yes, and it’s worth it! Shop around for a credit card processor and or call your current one and ask for better rates. The credit card processors would much rather keep a current client happy than spend their time trying to find a new one. Be sure you are educated about tipping guidelines and reporting for your city and state. If your credit card company says they cannot add a tip line (this happened to me) tell them it’s the same requirement of a “human” salon or bar tab. If they can’t give you this…threaten that you’ll go elsewhere.

Those are my two cents for today. I hope you and your employees find these tips useful and profitable for your business. Stay safe and fabulous. Until next time…


Leel Michelle


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