Salon Credit Card Processing
Operators of Nail Salons, Hair Salons, Beauty Salons and Spas normally operate under a variation of what would be considered a “Retail Merchant Account.” A Salon Credit Card Processing Merchant Account is appropriate for business where the customer physically presents his or her card to the merchant (salon or spa representative). This is what we refer to as “Card Present” or “CP.” Some often refer to this as a “swipe” account.
As the card is present, the risk of fraud is much lower and rate structures reflect this reduction in risk. This is especially true for a high volume of lower ticket transactions. (If you would like more information about rate structures, consider visiting our “Merchant Accounts” page.)
What you should know about Salon Credit Card Processing?
While the fraud risk might be lower for Salons & Spas, there is an increased risk for services that reflect higher transaction amounts such as such as coloring, extensions, makeovers, wedding parties etc.
Card issuing banks and processors might recognize these transactions as a low fraud risk; however the exposure in relation to charge-backs (customer disputed transactions) is greater as the transaction amount increases. This certainly isn’t a unique characteristic salon credit card processing, rather a recognized risk of higher cost, service related transactions. But in this case, it’s likely that part of your success isn’t just service, but also benefits substantially by traditional product oriented retail sales.
When you a have a business such as a Salon which seeks to secure a merchant account, it’s imperative that you find a partner that understands the dynamics of your business. When considering a Salon Credit Card Processing solution, you could benefit greatly by a seasoned, well trained partner that asks the right questions and presents you with a well thought out solution; a solution that doesn’t charge you a premium for risks that might not be representative of your business. Part of our success here at 1st National is attributed to the relationships we have with our customers, and this wouldn’t be possible if we didn’t have a thorough understanding of their business.
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Salon Credit Card Processing Equipment
The appropriate Credit Card Machine can also be a critical business decision. If you have a single station salon then maybe all you need is a basic credit card machine capable of processing credit, debit, and check cards with the ability to print.
Perhaps you have a customer relationship management system for tracking and scheduling customers and appointments, and what you need is simply the merchant account to interface with your system.
Many may require an entire system that supports multiple merchant accounts enabling independent contractors to have their own ability to process payments. This might be a requirement for an establishment where each station is rented by a particular stylist. Customer information might be tracked as an establishment, with the revenue associated with charges going to the stylist directly.
Obviously the hardware solution is going to depend on the type of salon or spa you have, what systems you need, which are already in place, and what solutions will be cost effective while also giving you the opportunity to expand.
For those of you who are 1st National customers you should be aware that your discounts can be quite aggressive, so please make sure you talk to us before purchasing from our cart.