A Guide to Accepting Credit Cards
It is not crucial that businesses receive only credit card payment for the purchases of their customers. However, if small businesses accept credit card payments the they make is convenient for their customers and will also allow them to make larger purchases because the payments are delayed anyway. Most consumers do not want to give vital bank account information and so they are happy that when they shop online they can use their credit cards when making purchases.
There is an application to process in order for small businesses to accept credit card payments from their customers. A merchant account should be set up for your store which you can do through your bank of any financial institution. This merchant account involves an application process and generally will approve you to accept the most common credit card that are available.
If your merchant account is already processed and you are allowed to accept credit card payments for purchases then you also need equipment that can ready credit cards like a processing equipment which you can buy or lease, but better still you can buy an inexpensive credit card reader which you simply attach to your smartphone through the ear jack and you are able to read credit cards. You simply insert the credit card in the card reader and you can immediately receive verification if the credit card is approved or declined at the point of sale.
If your storefront is only online, you can obtain a merchant account through the traditional means called payment gateways. Payment gateway makes it possible to sell online. This will allow your company to charge your customer’s credit/debit card with the purchase that it makes online. Businesses online can also opt to use online payment processors. An online payment processor is a financial institution providing payment processing services to 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. Many consumers who shop online tend to trust these sites to process payments and know that their financial information is never viewed by you as the business owner. This provides them with additional online security.
There are a lot of credit card processing that will charge a discount fee per transaction and that it is why it is important to understand fees. This means that a percentage of the total purchase amount will be charged to the retailer for processing the credit card transactions. Some processors charge fixed per transactions, other charge monthly, quarterly or annual fee. So one must be privy or it pays to shop around and find the best credit card processor based on the needs of your business.
If you have finally chosen to accept credit card payments then you also agree to accept the fees associated with the processing. It is not acceptable to charge the fees to the customer or require a minimum order amount for the customer to be able to charge the purchase.
Recommended reference: read more
Originally posted 2016-10-14 11:36:48.