Cheap Credit Card Processing For Small Business – In 2021, payments with credit and debit cards accounted for 57% of total payments. As a small business owner, you may be put off by the cost of accepting credit cards. However, accepting credit card payments for small businesses can open the door to more customer traffic, increased loyalty, and bigger sales.
Although there is a setup process, accepting small business credit cards may not be as difficult as you think.
Cheap Credit Card Processing For Small Business
You can accept several payment options, including cash payments, checks, debit cards, gift cards, mobile payments and credit cards.
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Displaying the logos of the credit cards you accept instills confidence in your customers. And it establishes your business as a legitimate entity.
By offering non-cash payment options, you attract more customers to your business, potentially leading to increased sales.
Chances are your competitors already accept credit cards. Don’t give your customers a reason to buy from them instead of you.
Unlike other forms of payment, credit cards are revolving lines of credit. Users can borrow up to their credit limit, giving them more freedom to make large and/or impulsive purchases.
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Not all customers carry cash. Offering payment options such as credit cards, debit cards and mobile payments makes the purchasing process simple, easy and convenient. And it makes customers more likely to return to your business.
Credit card payments are processed electronically, meaning you can receive payment the next day. If you mail invoices or only accept checks, it may take days or weeks to receive payment or wait for checks to clear.
The software you use to run your business can be integrated with payment technology. With just a few clicks, you can quickly prepare to accept credit cards without creating manual invoices or trips to the bank.
When all of your credit card payments are processed in one interface, reporting and reconciliation happen at once, which eases your obligations come tax time.
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If you plan to run your retail business online, the only efficient way to manage your e-commerce store is to accept credit cards or other alternative payment methods such as mobile NFC payments.
While accepting credit cards comes with its own security issues, it’s a safer alternative to keeping large amounts of cash in your small business. Fraudulent credit card payments can be recovered, not always in cash.
As a business owner, you must already have a point of sale (POS) system in place to manage transactions. You also need a merchant account and a credit card reader to accept credit cards. The account makes it possible to accept credit card payments.
Make life easy for your customers (and you!) by accepting credit card payments. Simply create a merchant account to get started. You’ll love how easy it is to pay with the click of a button!
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A credit card reader works with your POS system so credit card sales are recorded. Typically, your credit card reader also accepts debit cards. Customers must be able to swipe or insert their credit cards into a credit card reader.
Once the customer swipes or inserts their credit card into the machine, the purchase will be approved or declined. When the customer has no more credit to spend, the purchase is rejected.
If the card is approved, you can complete the transaction. Your merchant account charges them and deposits the funds into your account within a few days.
A payment gateway is your POS credit card processor. Customers can enter credit card information from anything with an internet connection, including mobile devices. Your online credit card processing system should be secure.
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If you have a physical storefront and sell your products online, you may be able to use the same merchant account for both, depending on your provider.
You must pay fees to accept credit card payments. Fees vary based on your merchant account provider, the customer’s credit card company, your business sector and how you collect payment.
Some companies charge both a percentage of the sale and a commission for each transaction (1.5% + $0.20). Others choose to receive only a flat percentage (3%) of the sale.
Let’s say you have a merchant processor who charges 2% of sales and 30 cents per transaction. A customer charges $40 on a credit card. Your merchant processor will receive $1.10 [(40 X .02) + .30].
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Average credit card transaction fees for MasterCard, Visa, Discover, and American Express range from 1.35% to 3.35%.
Credit card processing fees are usually higher for online businesses because the chances of credit card fraud are higher.
You can require customers to spend a certain amount to use their credit cards to avoid fees for small purchases. For example, you might have a $10 minimum for credit card payments.
Some businesses charge customers extra for paying with credit cards. Do not transfer fees to your customers unless you contact your merchant processor, as their policies may prohibit it. You should also check your state laws on surcharges. For example, California, Colorado, Florida, and Maine are just some of the states that prohibit charging credit card fees to customers.
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Refunds may be common when you sell products. Depending on your small business’s refund policy, you’ll need to know how to charge the customer’s credit card.
In some cases, the customer has to swipe or insert the card to make the purchase. You can then refund the sale in your POS system.
Your merchant account provider will debit your account and the customer will receive their refund within two to four business days.
Just as processing fees are charged every time you sell a product, there may be fees when you return a sale to a customer. Some providers have no refunds. And some providers will refund you the original processing fee.
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Accepting credit card payments can increase revenue and customer satisfaction. And it doesn’t have to be expensive or stressful. To summarize, here are the steps you need to take to accept credit card payments:
Being able to accept different types of payments is great, but do you have a system in place to track those incoming payments? Patriot’s online accounting software allows you to easily record payments. Try it for free today!
Get started with free payroll setup and enjoy free expert support. Try our payroll software with a free, no-obligation 30-day trial. Home » Blog » Credit Card Handling » How to Set Up Credit Card Payments for Small Business
Learn how to set your business up for credit card success with our tips on choosing the right hardware and processor.
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With cash payments declining in popularity and more people using credit and debit cards than ever before, it is extremely important that most businesses can accept these types of payments today. Simply put, being able to accept credit and debit cards will increase your overall sales volume.
Fortunately, adding credit card processing to your payment setup is easier than ever. Payment service providers (PSPs) like Square can approve you for an account and allow you to start processing payments within a day or two. While traditional merchant accounts require additional time and paperwork to set up, they are still an affordable option and can save you money on higher monthly processing volumes.
In this article, we’ll discuss the different options for paying by card, including the hardware and software you’ll need to get started. We’ll also explain how to set up credit card processing for your small business. Finally, we’ll show you some additional resources that can help you learn more about the complex world of payment processing, allowing you to make more informed decisions about how to accept credit card payments for your small business.
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Merchants can accept credit card transactions in person or online. Another category of transactions, mobile payments, has become more popular in recent years as wireless terminals and mobile card readers have enabled businesses to accept payments virtually anywhere.
For businesses with physical locations (like retail stores or restaurants), you’ll need at least one credit card machine per location. These days, you have a choice between a traditional countertop credit card terminal and a POS system.
Countertop terminals can process transactions, but most traditional models offer little or no additional functionality. On the other hand, a POS system can handle inventory management, employee scheduling, and a number of other functions. Of course, POS systems cost more than most desktop terminals, although tablet-based systems are more affordable (and mobile) than a standalone POS terminal.
All modern processing equipment must at least support EMV (Europay, Mastercard and Visa) card payments. EMV (or “chip” card) is now the standard method for accepting credit and debit cards in the United States. Since EMV liability dates back to 2015, you may be liable for a fraudulent transaction if you accept an EMV-enabled card.
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