Are you a small business owner looking to accept credit card payments? If so, you’ve come to the right place to learn how. Plus, we’ll provide some golden rules for choosing the right payment processing solution for your business.
Why it’s worth learning how to accept credit card payments
As a business owner or self-employed as a side business, credit card payments are your most common source of income.
Credit and debit cards are safer to use thanks to personalized chip technology. People hardly carry cash anymore.
But not only that. Millennials like to store payment information on their phones, watches and digital wallets. It’s still paying with a credit or debit card, but now it’s just a flick of your hand or wrist. So simple – most of us love it’s simplicity.
Let’s face it, shopping is easier today. And, with the rise of online shopping, how are you going to do business if you can’t accept all forms of credit card payments?
You already know; that’s why you’re here. You’re here because you want a quick and easy guide to setting up how to accept credit card payments. Fortunately for you, that’s exactly what happens next.
Investment required to start accepting credit card payments
First, you need to decide how to accept payments.Will your business
- Pay in person?
- Online Payment?
- Or do you need to process both in-person and online credit card payments?
While it may look slightly different at first, in-person payments incur different fees and require different technology than online payments.
If you’re paying in person, you’ll need a device that scans the card and point of sale system. A good system will help you track inventory and more, not just be able to ring sales at the checkout.
For an online store you need a payment method provider (or Merchant Service Provider For businesses that do a lot of in-person and online business), if your website or hosting provider doesn’t include them.
Even so, a good payment method service will open up other payment methods besides credit cards. But you don’t want to be stuck with only accepting PayPal on your online store – that could kill profits.
Keep in mind that online transactions may result in higher fees. You’ll want to keep an eye on not only your payment processor’s monthly fees, but also their transaction fees or interchange rates.
Now that we’ve cleaned up your investment, let’s talk about the steps you need to take to get everything working.
4 steps to accepting credit card payments
You can start accepting credit card payments in just a few simple steps.
Step 1 – Decide how you want to pay
When you start your business, there are a lot of moving parts. It can be tempting to open the door and attract some customers.
But you don’t want to miss out on money because you can’t accept the most convenient payment method for your customers.
This step depends on the type of business you run.
Like we mentioned in the necessary investments section, this will determine whether you can payment method provider For your online store or online service, or if you need a complete set Merchant Services or a POS system Available for your brick-and-mortar store or pop-up store.
Keep an eye out for other payment methods your provider allows, be it mobile payments or tap-to-pay sensors for in-person sales, or accept bitcoin in addition to credit cards.
Typically, more e-commerce-focused providers won’t cost as much as a monthly bill, but may have higher processing rates. This is fine for low-volume businesses. However, if you plan on doing a lot of monthly transactions, Merchant Services can give you better rates.
Use the links above to guide you in finding the best software or service for your business.
Step 2 – Set up your credit card hardware
This part of accepting credit card payments is easy.
Now that you have the best way to process credit card payments, you need to integrate it with your storefront. A provider will help you with this process, but it’s important to understand a few things.
If you’re primarily sticking to in-store sales or want to make both in-person and online payments, you’ll need the right hardware.
If you only stick to selling online, you can skip to the end of this step.
Your store or in-person operation requires at least a card reader. You can choose from a complete point-of-sale system or use a mobile device such as a phone or tablet with a card reader accessory. Note that you need hardware that can read the EMV chip on the card for added security.
Just make sure everything is in sync and playing together nicely. This includes any inventory tracking, order tracking, and customer database tools or software you have, which also applies to e-commerce-only apparel.
Step 3 – Prepare to Pay Online Credit Card Payment
Your e-commerce store can be launched and paid by credit card in no time.
Before choosing a payment processor, you have to make sure it works with the platform on which your online store is built.This may also be the time for your research Build your first online storeupgrade it, or have someone else build it for you.
Some ecommerce website builders and providers will include payment gateways and processors, but this is for finding other options that can open doors beyond credit card payments and, more importantly, offer you better fees or free services .
A great payment service provider can even help you customize your online store’s shopping cart and provide convenience for your customers, such as regularly billing credit cards for subscriptions. Not every payment provider does this, so keep this in mind if you want to be able to accept recurring credit card payments.
Step 4 – Be aware of your fees
This step is a big, big, big part of the process. When you pay with a credit card, it costs something.
Every provider is different, and some providers charge more than others. To prove our point, some business owners have been shuffling between companies to get the best deals.
That’s not to say you should, but these fees are important to reduce customer costs and the bottom line.
The average exchange rate has been fluctuating, but to be sure, it’s closer to 1.8% per trade, plus 10 cents.
If you don’t get the best deals, or they start piling up and draining your profits, these fees can take a sizable chunk out of your profits.
You may need to adjust prices, add surcharges to certain payments (within regulatory compliance), or be creative in another way to keep your clients and accountants happy.
The more you understand how fees, percentages, and fine print work, the more confident you will be to accept credit card payments and start building your business.
Next step
Obvious isn’t it?
This is where you leave this page and start taking credit card payments right away.
Set it up now. It won’t take long. If you don’t, you’re already missing out on security and more convenience for your customers. Also, it makes good business sense to offer your customers as many payment options as possible.
By following the simple steps in this guide, you can make online and storefront payments with your credit card in no time. And, don’t forget, if you have any questions along the way, come back here, we’re here to help.
