A Guide to Accepting Credit Cards
It is not crucial that businesses receive only credit card payment for the purchases of their customers. However, if small businesses accept credit card payments the they make is convenient for their customers and will also allow them to make larger purchases because the payments are delayed anyway. When purchasing online it is also a great option to use credit cards because consumers do not really want to give information about their bank accounts when making purchases and we can understand that it is really for security reasons.
However, small business must apply to be able to accept credit card payments from their customers. A merchant account should be set up for your store which you can do through your bank of any financial institution. You should apply for a business merchant account which when approved will allow you to accept common credit card payments for purchases.
If your merchant account is already processed and you are allowed to accept credit card payments for purchases then you also need equipment that can ready credit cards like a processing equipment which you can buy or lease, but better still you can buy an inexpensive credit card reader which you simply attach to your smartphone through the ear jack and you are able to read credit cards. By inserting the card to the card reader, you will receive instant verification if the card is approved or declined at the point of sale.
For online stores, the merchant account can be obtain through the traditional means called payment gateways. This payment is your doorstep to making sales online. So when a customer makes an online purchase in your online store, you company can charge your customer’s credit or debit card. Another payment option that you can use is an online payment processor. Payment processors or acquirers are financial institutions that work in the background to provide payment processing services used by an online merchant. These companies usually have partnerships with other companies that directly deal with consumers or merchants. There is Paypal as a good example. Consumers trust these payment processing sites and know that their financial information is secure. This provides an extra layer of security online.
There are a lot of credit card processing that will charge a discount fee per transaction and that it is why it is important to understand fees. This means that a percentage of the total purchase amount will be charged to the retailer for processing the credit card transactions. Some will charge a fixed charge per transaction, others charges a monthly, quarterly or annual fee. Based on your business needs, you should be careful to shop around for the best credit card processing company.
So if you agree to accept credit card payments for purchases then you agree to the fees associated with this privilege. It is not acceptable to charge the fees to the customer or require a minimum order amount for the customer to be able to charge the purchase.
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