It's never too early to plan for the holidays

By Anastasia Zoldak

Black Friday is the launch date for the Christmas holiday shopping season, but smart merchants understand that it's important to plan for this season long before the holidays actually approach -- even in the summertime. Part of that preparation includes getting your merchant account in order.

Black Friday is the first Friday after Thanksgiving. Merchants consider it the start of the Christmas season. Black Friday refers to the start of the most critical four weeks of the retail year -- a period that can make the difference between having a profitable year or a loss. It is so important that most retailers depend on these holiday sales in order turn a fiscal profit.

According to the retail research firm ShopperTrack Corporation, in 2008, Black Friday sales reached $10.3 billion dollars in a single 24-hour period. This number demonstrates how important the beginning of the Christmas shopping season is to any business. The holiday season begins for retailers on Black Friday and ends on December 24. During this time, businesses are driven to maximize their sales.

Because it is so important to the financial health of businesses, merchants begin planning for Christmas holiday season starting as early as July. Larger retailers, such as Walmart, Sears and others, even have their promotional flyers for the day after Thanksgiving available online now for those shoppers who make shopping on Black Friday a family tradition.

Strategic planning for this shopping season is essential. Merchants must address merchandising, e-commerce issues, merchant accounts issues, which credit cards to accept, gift card systems, marketing and promotions. These are all factors in the profitability and success of a company on Black Friday.

A necessity for Black Friday
Having merchant accounts with all the major credit card companies is essential in today's business environment. According to Visa, one out of every three consumers in the United States is using a credit, debit or a prepaid credit product to make a purchase. This means that for every 100 dollars spent, nearly one-third of it is in some form other than cash or check. This statistic indicates that consumers often prefer to carry credit and debit products instead of physical cash or checks. This change in buying habits makes it essential for businesses to accept other forms of payment.

Merchant accounts for all the major credit cards allow a business to be competitive with their competition. Consumers tend to spend their money at businesses that make it simple and comfortable for them to purchase items. Studies have show credit card purchasers tend to be convenience shoppers who are likely to spend more and shop on impulse.

In addition, many credit card companies now offer reward and rebate programs to encourage shoppers to shop with their cards. Having a merchant account with one of these vendors allows business to market goods or service to coincide with these promotions.

Getting a merchant account
Getting a merchant account from the various credit card companies is sometimes just a matter of contacting your merchant bank. In addition, the Internet also offers businesses a number of options when becoming a credit card merchant.

The benefits of getting a merchant account to accept credit cards far outweighs any inconvenience it takes to set up the services. Businesses who accept credit cards automatically become part of the global marketplace since the credit card issuers also handle the international currency exchanges.

Once accepted as a merchant account holder, credit card vendors will often provide staff training and recommendations. The credit card companies also provide banner signs and decals to be placed in windows allowing customers to know that the business now offers credit card acceptance. Merchant account fees often vary, so it is essential that businesses shop around for the best credit card merchant fees.

By accepting a variety of credit cards, businesses will be more customer-friendly on Black Friday and throughout the Christmas shopping season.

In a recent 2009 field experiment at Carnegie Mellon University, researchers found that people who use credit cards for convenience could be induced to spend more money. Smart merchants can capitalize on this information by conducting strategic merchandise planning, advertising and offering credit card services. If done properly, businesses can increase their profitability on Black Friday and during the Christmas shopping season. By planning ahead businesses can finish the year "in the black." credit card, black friday, merchant account, Business, credit card companies, season

Article by Anastasia Zoldak

Published: August 28, 2009