As a small business owner, each sale is crucially important, and without accepting credit card payments you could miss out on customers who prefer paying with plastic over cash. According to a 2023 Federal Reserve Study, credit cards accounted for 31% of payments more often than debit or ACH methods of payments combined.
Credit cards with generous spending limits, enhanced security features, and rewards make for convenient payment solutions that could benefit any small business, whether that’s operating online shops, running side hustles, or expanding an existing storefront. Credit cards allow your small business to accept plastic as you accept customers while collecting payments – you could accept credit cards when opening or expanding an online shop or storefront!
Steps to Accept Credit Card Payments
Before permitting customers to swipe away with abandon, it’s worth exploring assistance in selecting an efficient credit processor with low processing fees and payment terminals tailored specifically for your small business needs.
Using these four simple steps as guidelines you will easily be accepting credit card payments within no time at all!
1. Determine Which Credit Card Processor Is Appropriate For Your Small Business
There may be many similar credit card payment processors on the market today; to select one suitable to your payment methods you should start by answering some basic questions like these:
- How are your credit card transactions planned to take place and accepted credit cards – Visa, Mastercard Discover American Express, etc? (whether one card at a time, all together, etc?
- Are You Willing To Pay an Acceptable Maximum Processing Fee?
The fees that providers charge differ based on transaction types and networks; select one that offers lower processing fees for those transactions/cards you will use most frequently. If your business operates online exclusively, a payment processor that integrates seamlessly into the website should be your top choice. In case your physical business requires payment terminals which must work alongside existing POS systems seamlessly is also essential.
2. Compare Pricing
Once your quotes and estimates from providers have come in, compare their quotes. Consider both their costs as well as how many transactions they can handle per day with you renting or buying their equipment for processing transactions.
3. Establish a Merchant Services Account
To successfully conduct in-person transactions, a Merchant Services account will be necessary. Most banks offer in-house merchant service offerings for business accounts to accept various forms of payments and track sales. Online businesses require less hardware to operate due to not accepting payments in person from customers; as a result, expenses can be decreased drastically. Payment processing from customers often relies on services like Paypal, Stripe, or Square for processing payments from their customers – for this process to happen you do indeed require a business bank account to accept credit cards successfully.
4. Install Payment Terminals
Setting up payment terminals in your business is the final step toward accepting credit cards, although online businesses will bypass this step because payments will be accepted via secure online payment gateways.
Many card readers on the market allow businesses to accept payments via swipe, chip, and contactless tap payments. There are various card readers on the market that facilitate these payment types allowing you to accept them with ease.
You must set up online payments if you plan to sell anything online, for which Shopify provides its own payments portal. Depending on how complex or unique your website design or development project may be, additional assistance from card processors or developers may also be needed if building it yourself is involved.
Accepting Credit Cards
Small businesses have three options to accept credit card payments:
- in-person
- online
- over the phone
Each method comes with its own set of technology requirements and fees that must be fulfilled to take part.
Brick-and-mortar merchants, service providers on-site – such as plumbers or HVAC technicians – and mobile businesses such as food trucks or market vendors all can benefit from in-person credit card processing services. Mobile card readers must be used when processing transactions of this nature.
In-Person Transactions
It occurs when customers present their cards to complete transactions in person and are considered lower-risk transactions since a customer is present and present when making this type of purchase decision.
To successfully process credit cards, both a card reader and a POS system will be essential components.
Shopping Online
To conduct online transactions securely and cost-efficiently, e-commerce shops, websites, or e-commerce shops will require both an online storefront (such as their domain/ domain) and a payment gateway to accept credit card payments securely from customers.
Businesses using credit card processing include online stores (like websites/ domain names /e-commerce shops, etc), restaurants online / digital service providers, typically more costly due to risk associated with fraudsters trying their luck online than offline transactions in person.
What Are the Advantages of Accepting Credit Cards?
Offering your customers the option to pay with credit can boost your bottom line significantly. According to researchers at the Massachusetts Institute of Technology, consumers typically used their cards more often for making high-priced purchases as well as spontaneous impulse buys than cash payments were used for.
The study revealed that consumers’ preference for using credit cards to pay has steadily grown each year since 2016. Their preference increased from 18% to 31% within seven years; it’s worth accommodating customers’ desires to swipe. You may not realize, but accepting cash deposits has many other advantages besides just safety:
Safe
Carrying less cash at banks is safer; money can now be directly deposited into your business account instead. Gain an edge over competitors who only accept cash or debit cards through faster settlement times and fraud protection measures that give customers greater convenience for paying quicker and easier than before
Credit cards provide many advantages for small businesses that far outweigh any associated fees. Credit card processing providers charge fees to cover services like fraud checks and verification of funds available in an account. Payment terminals perform these security checks instantly as soon as a customer swipes, touches, or dips their card into it.
What Are the Typical Charges Associated with Credit Card Processing for Small Businesses?
The absence of monthly processing fees for accepting credit card payments is great news. Most providers charge per transaction, depending on whether the payment uses Visa, Discover, Mastercard, or American Express. However, because American Express charges higher fees, some businesses choose not to accept American Express transactions altogether.
Your fees depend on which card processor (such as PayPal, Stripe, or Square ) and the method you choose when accepting payments – each has different pricing structures ranging between 1.5 percent to 3.5 percent plus a flat fee rate.
As a smart merchant, you are undoubtedly searching for the most cost-effective and secure
method of accepting credit card payments. In order to narrow down the options for you, consider your business requirements such as transactions made per year and where these take place.
Bottom Line!
It is increasingly crucial for small businesses to accept credit card payments. Many consumers today prefer using well-known cards because of their ease, security, and rewards (if relevant). By not receiving them, your company risks missing out on potential customers who use these payment options.
Experience The Exzact Advantage Today!
Don’t let the complexities of payment processing hold your business back. Partner with Exzact Business Solutions and unlock the power of secure and seamless payment solutions. Contact us today to learn more about our services and discover why businesses trust us to handle their payment processing needs. Together, let’s build a future where payments are fast, secure, and hassle-free.
Remember, behind every successful transaction lies the expertise and dedication of Exzact Business Solutions—your trusted partner in navigating the world of payment processing. Join us on this journey and experience the difference firsthand!
