If you aren't taking payments for credit cards then it is quite likely you are missing out on a lot of custom. According to a 2014 survey, 37 percent said that they make at least half of their purchases on a credit card. In the UK, around two thirds of retail spending is done on card.
Whether you are a small brick-and mortar business owner with a cafe or shop to run, or an online company looking to make their mark, credit card processing is a crucial part of any operation.
This guide covers the basics of credit card processing.
What Is Credit Card Processing?
Credit card processing includes any transaction that is made on a card, rather than with cash. There are three main situations in which this can occur:
Online card payments
In-store (POS) transactions
Mail, telephone, or fax
Each of these situations has methods available by which you can process a payment made by a customer, such as a terminal or mobile credit card processor. As a merchant, you should choose your service provider and method according to your needs.
In any case, there are always four parties involved in any credit card processing transaction:
The merchant who is selling the service or product.
The acquiring bank; the bank used by the merchant to provide the processing.
The issuing bank; the bank who issued your customer's credit card.
The customer.
The acquiring bank...
Whether you haven’t started collecting credit card payments yet, or you want check around to find better service than you currently have, you’ve come to the right place. There’s a lot to consider when deciding if a processing company is right for you, but thankfully, there are many great companies to choose from, and options if you don’t fit in a traditional business model and you need more specialized service.
If you’re debating about credit card processing and wondering if it is worth all the trouble, the following statistics on small business in America might change your mind. According to a study done by Investor’s Business Daily, there are still many small businesses in the US that haven’t began accepting credit or debit. In fact, over half of small businesses only collect cash and/or check, but this detail ends up costing small business owners in America a lot of money.
Because most customers primarily use credit or debit with purchases, it translates into big financial loss for businesses. The sobering fact is that nearly $100B of sales are lost to small businesses in the US annually, which translates to an average of $7000 loss to each business.
The numbers are in: It pays to accept more forms of payment. Although you will incur costs of setup up as well as credit card processing rates and other fees, you should also see an uptick in...
If you think you’re one of the only businesses who hasn’t yet jumped on the bandwagon and started taking plastic, you’re wrong. Just about half of all businesses still haven’t upgraded to begin accepting credit and debit cards, according to an article published in Investor’s Business Daily .
Could it be that credit card processing presents an overwhelming upfront challenge to small business? It’s completely understandable that a business owner would feel overwhelmed with new technology, as well as simply not knowing what is needed and where to begin. It may feel overwhelming, but we don’t think it should have to be.
Read on and find out the basics of why you should make the switch—we’ve simplified the process so you can feel completely confident that you know how to ask the right questions and find out exactly what you can expect—and find the best credit card processing company that’s right for your business.
So why should I switch—my business is doing fine right now!
Whether you’re a small “mom and pop” business that has grown steadily over the years and established yourself in
the community, or you stumbled into success and you’re thinking about accepting credit cards to improve your customer experience, switching to accept credit, debit, and other forms of payment can only improve your business.
In fact, what if I told...
These days, both online and brick-and-mortar businesses are generally expected to accept credit cards. In order to securely process a credit card transaction, however, a business must have a credit card processing service. These services aren't free, which is what leads some small business owners to stick with cash and/or check as a preferred form of payment. In today's consumer world, however, accepting credit cards is a must—for numerous reasons.
Faster Checkout
For brick-and-mortar stores, there's no faster way to complete a transaction than via credit card. All it takes is a simple swipe and perhaps a signature; from there, the transaction is done. No need to count cash, give change, or process a personal check. As a result, your checkout line moves faster and your customers are happier.
Greater Convenience
These days, credit cards and bank cards are the preferred form of payment across the United States. By giving your customers the convenience of letting them pay with their credit cards, then, you make them more likely to return in the future. After all, not all consumers these days carry cash or a checkbook with them at all times, but most carry their credit or bank cards.
Increased Security
Last but not least, credit card processing services are extremely secure, giving both you and your consumers the peace of mind in knowing that their...
Today everything is all wired up, and businesses that do not accept credit cards are at a disadvantage. Sure, PayPal and similar sites are OK for online payments, but paying this way is unfamiliar to most folks and not as convenient as more familiar payment methods such as Master Card, Visa, Discover, and American Express. Many customers use a debit card issued by their bank too.
So, to be customer friendly, get paid immediately, and keep costs down you want to sign up with a credit card processing company. Studies show that businesses that begin to accept credit cards can enjoy sales increase of up to 30 percent.
How Credit Cards Benefit Your Business
In almost every case, a business benefits from credit card processing, but only if the company you choose has been thoroughly vetted by you and specifically fits your business. Finding a credit card processing company is easy, finding the right card processing company, not so much.
One popular method is to call others in your line of business and ask them about what credit card processing company they use, do they fit the business well, what their pricing is like and other questions you may have. When several companies in your field use the same processing company you may have found a company that “fits.”
The benefits to you as a business owner are very important, and the five most important benefits are,
Whether...
Credit Card Processing
