As a business owner, accepting credit card payments is one of the best decisions you can make. You may be missing out on huge profits if you still accept only cash payments.
Some small or medium business holders experience difficulties while transitioning to cashless bill payment options. Attempting to configure a method for accepting credit cards?
It is not as complex as it appears. In fact, accepting card payments in-store, online, and anywhere else will make your business more hassle-free overall.
It is genuinely as easy as deciding upon the least expensive and most convenient path for transactions. The route from a customer’s card to your bank account should be uncomplicated.
To simplify, it is basically a process of just 2 steps:
- The initial step is figuring out the way you want to conduct regular business with the customers—face to face, through a POS system, mobile device or card swiping. Or you can do this through Smartphone or the Internet (but this can be tenuous).
- After you choose the best option for your business, you may have to get a merchant account (payment processor or card processor). This will act as the financial middleman, which will approve all transactions and then credit the money into your bank.
Selecting a credit card processor can be a difficult task for some business owners. Since there are hundreds of payment processors available, and with so many options for accepting credit cards, it is easy to get baffled.
Sometimes, it might not be necessary to get a dedicated merchant account, as the payment method you choose could be directly connected to the business owner’s bank account.
To decide which credit card accepting method suits you best and to clear all confusion, you need to know a little about the process involved in each. The 4 fundamental techniques followed for accepting payments through credit cards are explained.
(Please note you do not have to understand all the technical details involved in these processes.)
Just the simple ones are enough.
1. POS (Point-of-sale) System
A POS system is a comprehensive checkout desk that generally includes a cash register, barcode scanner, printer, touch screen, card swipe machine, an NFC reader (for Android Pay, Apple Pay or Square), and other equipment.
This system demands a payment processing account, however, you may be required to get a merchant account to process such transactions. POS systems are more suitable for businesses that have fixed physical locations. Each of these terminals could be interconnected to multiple cash registers or locations. Or another possibility is their connection with other business divisions such as inventory or accounting.
2. Mobile card processor
As an on-the-move credit card processing system, you will need a tablet or smartphone that is equipped with software to process any credit card.
This can be done anywhere, regardless of the location.
You may also need a merchant account or payment processor. This may not be necessary, but a card reader might be required, for instance, EMV.
Such specialised credit card readers can be attached directly to the smartphone.
This mobile technique is good for businesses that operate from varying locations or those who process card transactions from anywhere in a store, or if only a few transactions are done in a single day from a fixed physical location.
3. Card terminal
A card terminal is usually present at all cash registers. It is hardware equipment used for swiping credit cards by hand.
This service definitely demands a separate payment processing account, which is usually a part of this service package.
4. Online payment
An e-commerce business that accepts payments through their online store, blog or website, such as Amazon, eBay or Etsy use this.
Most third party, web-based businesses will not require a merchant account but standalone sites using shopping cart software may need it. It is good for businesses that have a majority of online transactions.