How to Increase Concession Sales With Credit Cards

Credit card processing equipment is needed to accept such transactions.

Concession stands are found at sporting events, activity facilities and on street corners in business districts or large cities. These vendors may focus on snack items or full meal options. Regardless of the items for sale, increasing the number of ways a customer can pay may boost sales and potential profits. When a customer is not limited to cash on hand, that increases the likelihood of impulse purchases with a credit card.

Things You'll Need

• Payment method signs

Instructions

1. Obtain a merchant account. You will need an account with a credit card processor, or merchant bank, to make transactions with a customer's credit card. The application process generally involves providing demographic and financial information on the business as well as the responsible party for the account.

2. Purchase credit card transaction equipment. If you have access to a secure phone line, you can opt for a more traditional credit card transaction machine, or one built into your cash register. If your concession sales are primarily done through a mobile kitchen or on foot, you will need wireless credit card equipment. Ensure the equipment you select meets or exceeds your processor's specifications.

3. Evaluate your prices. Accepting credit cards can decrease your profit margin because the processor holds a percentage of each transaction as a fee for the service. The percentage varies according to card type, processor, transaction volume and your merchant account contract. Modify your prices as needed to ensure you do not lose money when accepting credit cards.

4. Place signs on your stand alerting customers to your credit card acceptance ability. Place signs on your menu, on the physical structure and on your cash register as appropriate. Often, you can obtain basic credit card signs from your processor for free. Be sure to place pictures of the exact types of cards you accept.

5. Distribute advertisements about your new credit card payment method. Consider placing physical signs around an event facility, on a street corner or via other event-based marketing tactics. Tailor the advertising to the venue and location of your concession stand. You can also use social media to advertise.

6. Mention your credit card acceptance policy while customers decide on their orders. Customers may vary their orders based on payment options.

References

• Dun & Bradstreet: Setting Up Merchant Accounts for Credit Card Processing
• American Express Open Forum: How to Accept Credit Card Payments on Mobile Devices; Jennifer Van Grove; October 2011
• MSNBC: How to Open a Successful Food Truck