Accepting credit card payments from customers is indeed a great marketing strategy in enhancing your company’s profitability as well as gaining more potential customers.
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However, if this will be your first endeavor in accepting credit cards, you might find yourself lost amid the confusion of credit card processing and banking systems.
How to Accept Credit Card Payments
One of the first things you need to consider would be which merchant account provider would you choose? Credit card processing can be provided by a bank, a third party processor, independent sales organization, financial provider, or a small business association.
If you already have a corporate business credit card, it is a good idea to inquire with the same bank that issued your corporate credit card about credit card processing. Most banks offer service packages for businesses who would like to accept credit card payments from their customers. However, some banks use third party processors that handle credit processing for businesses on their behalf.
You may also choose to get credit card merchant servicing from an independent sales organization (ISO). Most ISO are more lenient when it comes to granting approval for businesses who are applying for a merchant account. Small business associations can also be an option. Associations are particularly helpful for those businesses that have not yet attained a merchant status but would like to accept credit card payments in their business transactions. However, if you’re going to choose associations or independent sales organization, make sure that check from the Better Business Bureau if the company is legitimate merchant service provider.
Choose a merchant service provider that not only charges more reasonable rates but also provides adequate support for your business. If you find it hard to decide with which merchant provider is best for you, you may also inquire from other companies or businesses about which merchant provider they use and what they think about it. Applying for merchant services can be a little costly. However, the advantages of credit card processing for your business are certainly worth your pay. Not only will your business gain a bigger customer base and more sales, credit card payments also provide convenience with managing your business funds.
Your Responsibilities as a Merchant
Your eligibility to obtain a merchant account will depend on your credit history. Merchant services providers do not accept a merchant account application without checking on the legitimacy of the business and the credit history of the business owner. If you have been approved, make sure that you are aware of all the charges you will be responsible for. Initial payments would be for the terminal, or the machine you need to swipe the credit cards and the application fees. However, there are other recurring costs that you also need to be aware of. These are the discount rate, transaction fees, annual fees, programming, Internet processing, shipping, handling, customer support and other service fees that goes with your merchant account.
Another important thing to consider if you’re business will accept credit card payments is providing your customers with a secured server, or a server that uses Secure Sockets Layer (SSL) encryption to ensure that all information will be protected. This can also cost a significant portion from your budget but this is really a necessity. You may also ask your merchant provider if they can provide you with such service.
Lastly, be sure to read all the terms included in your contract with the merchant service provider you have chosen. It is your responsibility to make sure that all details of the contract are clear and correctly understood.
