Accepting credit card payments has become the norm for many businesses or companies especially since it is a convenient payment offer for customers or clients. However, this method is not always profitable for small businesses as credit card payments can include fees that affect the profit margin.
However, there are procedures to credit card payments and processing fees which will make it easier for accepting credit cards in your small business.
How to Include Credit Card Payments in Your Small Business
Accepting Credit Card Payments:
This can depend solely on how you do business with your customers because your method of business must align well with the way payment for goods and services is made by them. For example, if your small business sells its products via websites, then it is set up to receive online payments which means that the best way to accept credit card payments is through creating credit-card-powered gateways to offer a computerized process.
In another instance, if your small business thrives on the move, then mobile card payments can be introduced instead. By attaching a card reader to your smartphone, you’ll be able to accept card payments immediately.
Choosing Credit Card Service Provider:
Several service providers have been known to establish contracts with businesses to set up the processing of credit cards through their own banks, and it is up to you to choose the best one for your small business. The first credit cards service provider option is the Merchant Account Provider which is a specific bank account that works by transferring the proceeds from credit card payments before customers pay off their card issuers. Although this option can be a lengthy one while applying and requires credit checks sometimes, it provides substantial customer support, and there are no issues of holds or interruptions with the account.
The second option is Payment Service Provider which combines all of its clients into one large merchant account rather than providing an individual one, although there is an option for your business to create its own merchant account. Lastly, the Payment Processors handle all the transactions from the beginning to the end by providing your business with the credit card devices and other instruments you need to accept credit card payments.
Setting up Payment System:
This also depends on the method of credit card payments your small business intends to accept. For a credit card that has been physically provided by your customer or client, you should purchase the proper hardware that includes the options for Europay, Mastercard, and Visa card to accept payments. For online payments, be sure to link your business website with the processing system you have chosen for credit card payments.
Other than gaining knowledge on including credit card payments in your small business, you should also learn about the proper measures on how to protect your business. Contact us today at ISU Wissink Insurance Agency to get started on your personalized business insurance coverage.