Getting To The Point – Merchants

How to Accept Credit Card Payments for Businesses

It is not imperative that businesses accepts credit cards as a form of payment from their customers. With the acceptance of credit cards by small businesses as a means of payment for purchase made, they make it very convenient for shoppers and they will be encouraged to but more products because they don’t have to pay it at once. This is especially true online where cash is not an option and consumers are weary about using bank account information when making a purchase for security reasons.

For a small business to accept credit card payments from buyers they need to do an application process. This means that your storefront will need to set up a merchant account through your bank or a financial institution. This merchant account involves an application process and generally will approve you to accept the most common credit card that are available.

When your merchant account is approved you need a credit card processing equipment which you can lease or buy so that you can process the cards through your financial institution, or you can also buy an inexpensive portable card reader which you can simply attach to your smartphone using its earphone jack. By inserting the card to the card reader, you will receive instant verification if the card is approved or declined at the point of sale.

Online businesses can obtain their merchant account through payment gateways which is traditional for online stores. This payment is your doorstep to making sales online. So when a customer makes an online purchase in your online store, you company can charge your customer’s credit or debit card. An online payment processor is another payment option for online businesses. Unlike payment gateway, payment processor or acquirers are the financial institutions that work in the background to provide all the payment processing services used by an online merchant. Consumers or merchant are deal directly by the payment processing companies and their partner companies. There is Paypal as a good example. Most consumers trust these sites where they know that their financial information is secure. This provides them with additional online security.

Understanding fess is important because many credit card processing account charge a discount fee per transactions. Meaning, that a percentage of the total purchase amount will be charged to the retailer for processing the credit card transaction. The fees differ in that some charge per transaction, some monthly others quarterly, and yearly also. You should consider your options well when choosing a credit card processor based on the needs of your business.

When you agree as a business owner to accept credit cards, you agree to the fees that are associated with the privilege of doing so. You should not charge this fee to your customer or require them for a minimum purchase amount.