According to the Small Business Administration (SBA), small businesses are an economic force to be reckoned with: they represent 64% of net new private sector jobs and nearly 50% of all of this country’s private sector employment.
What’s really interesting is that of the 27.9 million small businesses identified by the U.S. Census Bureau in 2010, nearly 79% were businesses that did not employ anyone other than the proprietor (the term they use is “non-employer”), and more than half (52%) were home-based businesses. Artists, writers, hairdressers who rent chairs in a salon or work out of their homes, massage therapists, interior designers, and certain craftsmen are often non-employers who work out of their homes.
Besides being small businesses, they also have a few challenges in common:
- Often they have no process in place for invoicing customers, or may not want to invoice because of the effect it has on cash flow
- Sometimes they need to collect payment away from home or place of business, like at an art show or in a client’s home
- They may not have capabilities to accept credit cards because of the equipment required; the cost of credit card transactions might be prohibitive
So, what does a small business do? Cash-only transactions aren’t a viable, long-term strategy. In 2011, only 27% of all point-of-sale purchases were made with cash and that number is expected to drop to 23% by 2017, according to a report published by Javelin Strategy & Research.
Finally, A Convenient, Accessible Transaction Method
One very practical option that addresses their need for flexibility (and security) is SpotPay, a product of Fiserv.
SpotPay is a card reader that allows small businesses to accept credit and debit card payment – anywhere, at any time. All the business needs is an iOS or Android smartphone or tablet. Credit and debit cards can be swiped using a small device that plugs into the smartphone or tablet.
There are some convenient “bells and whistles,” too, like the ability to deliver receipts to customers via email (making hand-writing them obsolete), auto-calculation of taxes (no calculator required), and the ability to photograph the purchased goods, retrieve contact information from your address book and access transaction reports, too.
Is It Secure?
Every small business is concerned about protecting its systems from hacking. This transaction solution has strong fraud prevention tools and is designed to decline counterfeit cards. SpotPay users also get multi-layered security that protects sensitive card data from the point of swipe. SpotPay surpasses the Payment Card Industry Data Security Standard (PCI DSS), with a secure, cloud-based gateway and card authentication process. These features should give users – both merchants and their customers – peace of mind that this is an option that does not compromise security.
If you’re a small business owner and think SpotPay might be the solution you’ve been looking for, give us a call and we’ll provide some more detail about how it works and what it can do for your business. Give us a call at 920.729.6901 or stop in any of our Fox Valley locations.