February 2019

Page A25 FEBRUARY 2019 FUNERAL HOME & CEMETERY NEWS S ec t i on A Model contracts. Legal consultations. Sample forms. Discounts on multiple products and services such as performance surveys. ICCFA membership has its benefits. Reacquaint yourself with your association and see what benefits you can take advantage of by visiting www.iccfa.com. iccfa.com Membership That Matters. Reducing Credit Card Processing Fees By Jim Luff As a business owner, you know the value of every dime. To grow your business you must pay close attention to ev- ery expense. Unfortunately, accepting credit cards for your cases means incurring the cost of processing credit cards. Typically, credit card processing companies may charge as much as 5 percent on everything earned from credit card sales, including interchange costs, processing costs, and even a monthly fee for sending you a statement. Because paying with plastic rather than cash has become the pre- Jim Luff Impose Minimum Sales If your compa- ny handles smaller transactions, con- ly, look for hidden fees by reading every word of the “terms and conditions.” You also need to choose a reputable company that is dedicated to providing credit card processing ser- vices specifically for the fu- neral industry. You will likely see them supporting, sponsoring and participating in funeral in- dustry trade shows at a state and national level. Your state or regional association might have a processor that is a member of your associ- ation. In addition to saving money on processing fees, you gain access to other critical services such as on- line reporting, mobile apps and eCommerce integra- tion if you sell products on your website. Purchasing versus Leasing a Machine While it might seem as if leasing a credit card ter- minal is cost-efficient, in reality you will spend up to 20 times more than if you purchased it outright. The other issue is that leas- ing comes with a long- term contract that cannot be cancelled. The average cost of leasing a machine is between $20 and $50 per month, whereas the pur- chase of a terminal is any- where from $200 to $400, depending on what you decide upon. Avoid Manual Transactions Although there are times when manual transactions are necessary, you should avoid them whenever pos- sible. Entering transactions manually (such as accept- ing a card by phone) puts you at greater risk for fraud, so as protection the credit card processing company will charge a fee for every manually keyed credit card transaction. ferred way of exchanging money, you need to accept credit cards in order to sur- vive. According to the lat- est statistics, in 2018 only 14 percent of all point- of-sale (POS) purchases were made with cash. At the same time, a 42 per- cent increase in credit card use was anticipated. The cost of funeral services and the amount processed on a credit card can really affect your bottom line profit. A $4000 transaction can eas- ily eat up $200 of your profit. It is possible to reduce the cost of accepting credit cards. Here are some tips: Comparison Shop Before choosing a credit card processor, do some price comparison shopping. Some credit card processors have much higher fees than others for the same type and level of service that others provide cheaper. Most important- sider imposing a minimum for credit card sales. For in- stance, the profit margin virtually nothing. If you impose a minimum sale of $10 to $20, you are more likely to make a profit. Jim Luff is the marketing manager for Chosen Payments. Jim is also an expert in the funeral industry with respect to processing credit cards in the funeral industry and the unique requirements, needs and trends. He travels, participates and sponsors national trade shows such as ICCFA and NFDA as well as state and regional trade shows giving him the opportunity to speak to hun- dreds of funeral profession- als. Luff is a member of the California Funeral Directors Association Expo Planning Committee, Public Relations Committee and Legislative Committee. You can e-mail Jim.luff@chosenpayments. com or visit their website at www.chosenpayments.com/ industry/funeral-care/ for more information. on a $5 or less transaction is likely less than 10 percent. After paying applicable processing fees, you make Digital Directory Now Available CALL 1-800-321-7479 Only $125.00 Visit www.nomispublications.com