Consumers have grown accustomed to companies accepting credit and debit cards. With the right credit card processing company, accepting credit and debit cards is a simple process. Those who wish to accept credit card payments must do some research and determine which payment methods work best for them. Approximately three in four transactions today are made without cash, according to the 2019 Federal Reserve Payments Study.
The increasing popularity of credit cards is attributed to increased security features, generous rewards, and online shopping availability. According to the study, credit card transactions represent 34 percent of all card transactions.
You’ll learn the ins and outs of the credit card processing industry in this guide, along with the things you should consider when looking for a processor.
Follow these steps to set up your Business Credit Card Payment method
Accepting credit cards usually means that your customers prefer it or that you have an easier time keeping track of financial transactions. When considering who your customers are, it’s essential to think about how they use their cards.
For example, if the vast majority of them pay by card, that might be the only option you need to accept. In addition to accepting credit cards online, you might also accept them via phone, mobile device, e-commerce, and other channels. Understanding what type of credit card processing equipment you need can help you determine the types of payments you’ll accept.
Table of Contents
Assess How To Accept Credit Card Payments
The COVID-19 compliance standards have made it essential for merchants to have card scanners with NFC capability, such as accepting contactless credit cards and contactless Apple Pay.
The new payment technology doesn’t require others to touch the cards or phones. It’s just the convenience of tapping the cards or smartphones on a payment terminal. Also, thanks to Near Field Communication (NFC) payments, checkout is faster, implementation is straightforward, and consumer engagement is improved.
Select A Credit Card Processing Provider
You can choose from several payment processing providers that provide similar services at different rates. Consider whether you’ll process a more significant proportion of transactions in person, online, or over the phone. Additionally, consider what type of credit card you’ll accept: Visa, Mastercard, Discover, American Express, and so forth. Processing fees vary, depending on the type of transaction and the type of card.
If you’re processing many of your transactions, you should select a service that offers the lowest fees. Moreover, you should think about the volume of transactions that your business will process, as some providers offer cheaper rates for processing more transactions.
Your payment processor should easily integrate with your website if you run an online-only business. To see if your POS can be combined with your existing payment terminals, find out what hardware you’ll need to purchase for a brick-and-mortar business. Researching on the best ways to accept credit cards for small businesses can be overwhelming.
Evaluate Costs And Fees
This is one of the more challenging aspects of the buyer’s journey as pricing models and fee structures differ widely with every company. The rates on certain transaction types are determined using multiple pricing models. Choosing a highly effective credit card processing company like NADA Payments will save on credit card processing fees.
Open A Merchant Account
Establish a merchant services account with your chosen credit card processor after choosing one. PayPal is a popular provider for personal uses, but you need a separate business account to accept your company’s credit card payments.
After you find the merchant service provider which works the best for your business, you will need to open an account with them. Receiving credit card payments in your business account through a merchant account is one of the advantages of the services merchant accounts offer. Small businesses often find it easiest to accept credit cards through a reputable merchant services provider, though it is possible to open a merchant account at a local bank.
Typically, creating a merchant account requires you to provide your business with some information and connect with your bank account where the funds will be received.
Review The Contract
You should always review these contracts very carefully. Some firms attempt to conceal costs. If you feel something doesn’t look right, inquire about it. Consider whether the contract includes early termination fees, automatic renewal clauses, and other binding clauses. Have legal counsel look at the contract, if possible, to ensure everything is above board. After you’ve determined that the contract is fair and meets your needs, you can hand the contract over to the company you believe is the best one.
Generally, applications can be submitted online and take two business days for the processor to review. Once you’ve completed these steps and decided on a credit card processor, you’re ready to apply.
After your application is approved, the processor will help set up the account and assist you in selecting any equipment you may require. Once the hardware arrives, the processor will assist you in setting it up and testing it.
Set Up Payment Terminals
The final thing you have to do is to install payment terminals at your business to accept credit card payments.
For brick-and-mortar shops, if you don’t already have a POS or credit card reader, this step consists of purchasing and setting up the necessary hardware. Many card readers, including swipe readers, inserted chip readers, and contactless readers exist on the market.
Using the Shopify e-commerce platform, the payments portal will be integrated with the e-commerce platform. To use an eCommerce platform, you’ll need to set up online payments. Adding credit card processing for small businesses to your website may require technical support from your processor or website developer if your website is built by yourself.
The payments processing company will probably be able to provide you with information on using your equipment and software.
Conclusion
With today’s business landscape, accepting debit or credit cards is imperative. Cards are so widely used today that many customers no longer carry cash. In addition to boosting customer satisfaction, accepting credit cards promotes sales. Doing it in the right way can ensure customers are satisfied while you stay within your budget.
Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.
Leave a Reply