5 things you need to consider when accept credit cards to successfully

We all know how convenient credit cards can be. They make shopping online, paying in-store, or even getting a loan at the nearest bank branch a breeze. You don’t even...

We all know how convenient credit cards can be. They make shopping online, paying in-store, or even getting a loan at the nearest bank branch a breeze. You don’t even have to leave your home to take advantage of them. However, the convenience these cards offer you is only as good as the cards you choose to accept. If you’re unaware, you are probably missing out on some of the benefits that come with accepting credit cards. Most banks and financial institutions won’t approve an application unless you can justify the benefits it will bring to you as a business. Here are 5 things you need to consider when accepting credit cards to successfully

Make sure your business can accept credit cards

The first thing you need to do is make sure your business can accept credit cards. You need a merchant account with the bank or financial institution that will approve your application. If you don’t have one, you need to get one so that you can begin accepting credit cards for customers.

Decide whether you need to accept credit cards

Before you decide to accept a credit card, it is important that you assess whether your business needs one. Your business can have a significantly negative impact if it accepts credit cards and doesn’t know how to handle them responsibly. Digital marketing can be helpful for small businesses looking to grow their customer base. However, there are many misconceptions about what digital marketing is and how it can help your firm grow. It’s not enough to simply weave in popular keywords and deliver high-quality content. Brands also need to consider the entire user experience. As a result, it’s often worth outsourcing SEO services to ensure that your digital presence is generating maximum impact and capturing the highest volume of prospective customers. In much the same way that companies outsource their marketing efforts to experts, outsourcing SEO provides a way for brands to identify key strategic goals and then leave the complex process of meeting those goals to industry experts.

Know the benefits of accepting credit cards

There are many benefits that come with accepting credit cards, like the opportunity to earn more money or the chance to market your business to a larger audience. With credit cards, you can accept payments for international customers and make direct deposits. Other benefits include the option to choose which card is used for each purchase and the ability to provide discounts when paying by card.

Determine your card type and limit

The first thing you need to do is determine your card type and limit. This way, you know how many cards you can afford to accept at any given time. Next, you want to set a processing fee. The fee should be determined after comparing the costs of running an in-store terminal, paying a vendor for processing your credit card transactions, and what percent of your total sales revenue goes to cover these expenses. The fee also needs to take into account the cost of customer acquisition and retention, which could include what commissions are paid by vendors for new customers or discounts offered for loyal customers.

For personal use

Square is a good option for individuals who want to accept credit cards and use them for personal tasks, such as freelance work or garage sales.

Square is a payment processor that will work with you and your business. You pay a small fee each time you take credit card payments, but there are no monthly or annual fees. The company provides an inexpensive chip card reader as well.

If you want to accept credit card payments from friends, family, or other people you know and trust – like the friend who paid half your bill last night -there are peer-to-peer payment services that can let you do so.

With Small, monthly cash amounts

If you process less than $2,500 per month or have small sales tickets, it’s best to work with a payment facilitator like Stripe.

As a merchant, you have to pay Stripe just as much money for credit and debit transactions, but they charge less because they only take a percentage of each sale. Even though their fees are higher than other types of payment processing rates, the transaction fee is waived off so you end up saving more in this situation.

There’s no setup fee, the monthly fee (such as statement and payment gateway fees), or the annual PCI compliance fee.

Upon larger monthly sums

If your small business processes more than $3,000 per month or has large sales tickets, consider a company with lower rates like Payment Depot. This type of payment processing company can install a merchant account for you and process payments at low-cost rates.

Even though these processors charge fees that the aggregators don’t, they offer lower rates for processing larger sums of money each month.

You might not find the best rates for credit card processing from a direct processor, but that doesn’t mean you should stop looking. Independent sales organizations and merchant service providers who resell merchant accounts from these processors offer credit card payment options for your small business as well. You can choose between a month-to-month contract or one with an annual fee depending on what’s more cost-effective at the time of signup!

If you process a large volume of orders each month, you might also want to consider working with a direct processor like First Data, Wells Fargo Merchant Services, or Bank of America Merchant Services. These companies are better suited for larger businesses but they will also work with your small company if that is what you need.

If you’re looking for a point-of-sale system, check with the company to find out which credit card processors your POS system is compatible with. The best credit card merchants allow you to work with third-party payment processors so that you can shop around for low rates and fees.

Select your preferred payment gateways and evaluate equipment options

When accepting credit cards, you will be required to accept a payment gateway. Payment gateways are the intermediaries between an acquiring bank and your account. They come in two flavors: online and offline. Offline gateways are the ones that you have to handle manually. You’ll receive cash, use an ATM card or a check to deposit it into your account, and then disburse it from there. Online gateways, on the other hand, allow the customer to pay using their credit card without ever handing over their card information (and making them more likely to purchase). The downside of online gateways is that they require more software setup and more time processing transactions (which costs money). If you’re just starting out, it is best for you to go with an offline gateway because it’s cheaper and easy as well. However, if you want more assurance of security, go with an online gateway like Stripe or PayPal instead.

EMV chip cards

Magnetic stripe cards are the most common type of card reader, but EMV chip (Europay, Mastercard, and Visa) microchip cards provide you with more protection from liability for fraud at the point of sale. EMV technology also allows you to skip signature authentication, which can expedite your checkout process.

Besides being a card reader, the device should also have NFC technology which will allow you to accept mobile wallets like Google Pay and Apple Pay. This way, if the usage of these payment methods becomes more popular in your industry, then you won’t have to change your equipment again.

Nearly every credit card processor will sell processing equipment, and you should get at least your card reader from the company. The terminal may be re-programmed for compatibility by the processor if it is already owned. If peripherals are desired to come from a third-party vendor, contact with the processor is necessary beforehand in order to find out the compatibility of said item.

Upfront payment methods

You can avoid paying extra money on your credit card processing equipment by buying it outright. Installment plans are popular because they allow you to afford monthly payments; however, the prices of certain machines can rise in cost over time and become more expensive than if bought outright. One merchant signed up for a lease for $99 per month with a 48-month term- essentially, paying $4,800 for a machine that costs roughly $300 to purchase outright from the get-go. The FTC cautions against leasing credit card processing equipment as this high risk will most likely cause A mobile card reader is a small device you use to accept credit or debit cards from your phone using an app. Most models plug into the headphone jack, lightning connector, or micro-USB port on your smartphone (or tablet). A few newer models are Bluetooth-enabled and require no physical connection at all. The majority of these devices come with a free credit card swiper; however, it may be worth upgrading to one that accepts EMV chip cards and NFC contactless payments which usually cost less than $100. one’s a financial situation to be worse off than before

Free offers

When you have an account with a payment provider, they may charge you higher rates and additional fees such as an insurance fee or some sort of equipment maintenance fee. They will also require that the processing equipment be returned when your account is closed.

Nowthatwe’vegonethrough those tips, let’s take a look at some solid credit card processing hardware and technology options.

Mobile credit card reader

A mobile card reader is a small device you use to accept credit or debit cards from your phone using an app. Most models plug into the headphone jack, lightning connector, or micro-USB port on your smartphone (or tablet). A few newer models are Bluetooth-enabled and require no physical connection at all. The majority of these devices come with a free credit card swiper; however, it may be worth upgrading to one that accepts EMV chip cards and NFC contactless payments which usually cost less than $100.

Mobile card readers can be used on their own or with a larger system. They’re useful for accepting credit cards at a store, as well as processing transactions in the store during busy seasons or if your company only has a few transactions every day.

Credit card terminal

Credit card readers are often built with a receipt printer and keypad for PIN debit transactions. Countertop models connect via dial-up or Ethernet, while wireless models connect over Bluetooth, Wi-Fi, 3G, or GPRS. All new credit card terminals comply with EMV standards for accepting chip cards used in the United States and most have NFC technology

The most common type of processing equipment is a payment terminal. If you don’t require the credit card system, it can be used to accept payments at your business, or if you need a card reader with POS systems

POS system

This is a station where a customer can shop, purchase items and pay for them. The system typically consists of software, an interactive touchscreen or tablet, and a card reader with the ability to print receipts. Barcode scanners can also be added on if needed.

Depending on the type of system you choose, your POS’s price can be determined. Tablet-based systems that work with third-party hardware are usually the least expensive and offer advantages for physical locations.

Payment gateway

Online retailers need a payment gateway to accept credit cards. Payment processors can set up this technology and connect it with the retailer’s website or e-commerce platform. Some companies have proprietary gateways, while others use third-party

It is not unusual for this service to have an additional monthly fee, and some processors charge a setup fee per gateway, plus another transaction-based processing fee.

Conclusion

Accepting credit cards can be a great way to grow your business. It’s important to consider all the different factors that will affect your business before you make the decision. You’ll need to know what type of card you want to accept, as well as the limits for your approved credit cards. The most popular options are Visa, MasterCard, and American Express. You’ll also need to choose a payment gateway, which will take care of the details of taking payments from customers. For example, PayPal is a popular payment gateway because it’s easy and quick for both customers and vendors to use. The more you know about accepting credit cards, the easier it will be to start. When you know how to accept credit cards, you can begin accepting credit cards that fit your business needs and reap the rewards of doing so.