The Top Things Small Businesses Should Know About Credit Card Processing
23 June, 2017
Credit card processing for small business is a must-have if you are to have a better chance of success. If you can’t accept credit cards, your payment options are severely limited. You may end up driving customers away, all because you didn’t set up the merchant account that allows you to process and receive credit card payments.
If you’re looking into the best credit card processing service, here are a few things you need to know:
Who gets involved – Credit card processing involves four institutions: the financial institution/bank that provides the merchant services, the third-party middleman that processes the payments, the financial institution that issues the credit cards to your customers, and the credit card companies (Visa, MasterCard, etc.). These are known as the merchant bank, the processor, the issuing bank, and the card payment brand.
The different types of processors – Mobile Point of Sale (POS) systems allow you to make sales without the need for a credit card reader. Virtual terminals allow you to input data, while wireless credit card readers enable you to swipe or read cards. Wired terminals are hard-wired to an Ethernet connection. Each processor has its own pros and cons, and it’s vital you understand which will work best for your situation.
Security is vital – You MUST safeguard your clients’ credit card data, else you run the risk of a scandal and serious business problems. This requires a great deal of security elements: SSL certificates, PCI security, CVV2, E2EE, and more. It costs extra to upgrade security, but it’s worth it!
There are revenue requirements – Many merchant services require you to meet a minimum amount of revenue per month or per year in order to qualify for a merchant account. There are. However, a number of services that offer credit card processing for small businesses specifically, even with low revenue. It will take a bit of research to find them, but they can be a great option if you need a solution now.
Prepare for fees – Even the best credit card processing service comes with fees: processing fees, transaction fees, gateway fees, and more. You’ll end up paying roughly 3-8% of each transaction in fees, so it’s something you need to be prepared for when looking into credit card processing.
The ability to process credit card payments is vital for your business success. It will cost you—both in time and money—but it’s worth it in order to make it as easy as possible for your customers to purchase your products or services.