Small Business Saturday lands on November 28 this year, and the forecast is strong. The National Retail Federation projects November and December retail sales of $1.013 trillion, up 4.2% from last year. In NRF's October survey, 64% of shoppers said they'll likely hold most of their holiday buying for Thanksgiving weekend sales.
So the customers are coming. The catch is that your costs are up too. Inventory, shipping and supplies all cost more than they did a year ago, which means every sale has to carry more weight. You can't control what your suppliers charge, but you can make sure your checkout doesn't cost you sales or money. Here is the checklist I walk my own merchants through every November.
1. Check your settlement time
If your terminal batches out late, your money arrives late. On my accounts, next-day funding is standard as long as you settle by 5 PM Pacific. Confirm your auto-close time now, before a Saturday's worth of sales sits over the weekend.
2. Test every piece of hardware
Run a test transaction on every terminal, including the backup you only pull out in December. Print a receipt. Check the card reader, the cash drawer and the barcode scanner. Stock up on receipt paper. Know how your POS handles an internet outage and whether offline payments are turned on. Find out how fast your processor replaces a dead terminal. If the answer is "5 to 7 business days," that's a problem in December.
3. Install updates now, not on Black Friday
Update your POS software and apps this week. A forced update in the middle of a rush is avoidable. Reboot your router while you're at it, and if it's more than five years old, replace it.
4. Set up gift cards
Gift cards bring in cash now and a customer later, and that customer usually spends more than the card's value. If you run Clover, physical and digital gift cards can be set up quickly. Order the physical cards now, because print orders slow down as the holidays get closer.
5. Read your October statement
Before the volume hits, work out your effective rate: total fees divided by total card sales. If it's over 3%, or if you see fees you don't recognize, ask why. Several processors pushed through rate increases this fall, and the notice is usually buried in small print at the bottom of a statement. A fraction of a percent matters a lot more when your monthly volume doubles.
6. Train seasonal staff on fraud
Fraud climbs with holiday traffic. Teach every employee these warning signs:
Large phone or online orders from new customers, especially rush orders
A buyer who wants to split one order across several cards
A shipping address that doesn't match the billing address
Anyone calling and claiming to be from "your processor" or "Clover support" who asks for a login, a code or remote access
On that last one: hang up and call your rep directly. Chip and tap transactions are your best protection, so don't key in a card when the customer is standing in front of you.
7. Know who you're going to call
When something breaks at 6 PM on a Saturday, a call center queue won't save the sale. Put your rep's number where every employee can find it.
How Berry Payments helps
I've been in merchant services since 1998, and this is what my merchants get through the holidays and the rest of the year: interchange-plus pricing, no contract and no early termination fee, free next-day funding, free 24-hour hardware replacement, and phone support 365 days a year from someone who knows your account.
If you'd like a second set of eyes on your statement before the rush, call 888-560-9025 or use the contact form at berrypayments.com. The review is free and I'll tell you straight whether you're getting a fair deal.
Berry Payments serves small businesses in Oregon, Washington and nationwide.