A Guide to Credit Card Payments
It is not crucial that businesses receive only credit card payment for the purchases of their customers. By accepting credit cards, small businesses are making it more convenient and easier for customers to make larger purchases as payments are delayed for the consumer. Most consumers do not want to give vital bank account information and so they are happy that when they shop online they can use their credit cards when making purchases.
However, small business must apply to be able to accept credit card payments from their customers. It involves setting up a merchant account for your storefront through your bank or 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. You simply insert the credit card in the card reader and you can immediately receive verification if the credit card is approved or declined at the point of sale.
Online businesses can obtain their merchant account through payment gateways which is traditional for online stores. This payment is your doorstep to making sales online. This will allow your company to charge your customer’s credit/debit card with the purchase that it makes online. An online payment processor is another payment option for online businesses. Payment processors or acquirers are financial institutions that work in the background to provide payment processing services used by an online merchant. Consumers or merchant are deal directly by the payment processing companies and their partner companies. A good example is pay pal. Consumers trust these payment processing sites and know that their financial information is secure. This provides them with additional online security.
Understanding fess is important because many credit card processing account charge a discount fee per transactions. For the credit card transaction processing, retailers are charged a fee which is a percentage of the total purchase. Some processors charge fixed per transactions, other charge monthly, quarterly or annual fee. Based on your business needs, you should be careful to shop around for the best credit card processing company.
When you agree as a business owner to accept credit cards, you agree to the fees that are associated with the privilege of doing so. 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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