Credit Card Processing Options for Small Businesses

If you’re a small business, you understand the need to keep in the top of your game as far as the competition is concerned. Staying alert and looking for the next “big thing” is all part and parcel of running a successful small business.

If your small business is not accepting credit cards as a form of payment for your goods or services, you’re in real danger of falling behind the rest of the pack and losing out on serious money. In fact, if you don’t accept credit cards, you’re cutting out a large portion of your potential customer base – and throwing away significant profits in the process.

Many small business owners are confused about how to go about accepting credit cards. But in reality, the steps involved in accepting credit cards are simple and straightforward. In fact, if you do your homework and choose a merchant account provider that’s right for you and your business, you’ll find your account representative can give you advice about which services are best for you, and actually walk you through the entire process of opening a merchant account that will allow you to accept credit cards as a form of payment for your business.

Many merchant account services fees are based on the volume of business that is conducted. For instance, transaction fees and discount fees are charged when a transaction is made, meaning that even if you operate a small business with a low volume of sales, you won’t be paying the same costs as bigger companies with high numbers of sales. Setup fees have also been discounted over the years, and an experienced merchant account representative can point your toward other discounts and savings that are designed for the small-business owner.

While swipe terminals at retail outlets are likely the most familiar of the credit card processing options and equipment, there are merchant account options to suit all of your business needs.

Internet merchant accounts are especially popular among small businesses that want to compete in the online marketplace. Online consumers turn to credit cards for about 90 percent of all purchases, so if you want to succeed online, it’s essential that you explore the options offered by an Internet merchant account.

Basically, there are two types of Internet merchant accounts that you’ll be considering. In the first type of account, sales are processed through a gateway provider, or “weblink.” Each time a sale is made, the credit card information is entered into the computer by the customer, either at your site or through a third-party virtual shopping cart provider. Once the information has been entered, it is encrypted and sent via the gateway provider to the credit card issuer. Once the sale is approved or denied, the card issuer will transmit a code back through the gateway provider, directing the system to process or refuse the sale. The entire system is automatic, requiring no human intervention after the credit card information is entered by the customer.

The second type relies on a “virtual terminal,” or in some cases, on an actual physical terminal to complete the sale. In this case, when a customer enters his or her credit card information at your site, the information is transmitted directly to you or your staff, who must then enter the credit card information into a virtual (online) credit card processing terminal, or less commonly, into an actual credit card terminal with a keypad.

The virtual terminal is also often used by mail-order companies and telephone order companies (MOTO) that accept orders via mail or phone in addition to the Internet. Whether you are using your virtual terminal solely for online sale or for a combination of online or MOTO sales, you will have the option of entering credit card information as it is submitted to you for immediate approval, or to delay entering information until the end of the business day, often referred to as “deferred” processing. Some companies find waiting until a specific time each day to enter credit card information is a more efficient way of doing business; however, for sales that are not approved by the card issuer, customers must be notified, and receipts issued for approved sales, processes which can be time-consuming when handled manually.

Wireless accounts are also available, and are a great solution for small businesses that rely on traveling sales people, as well as for contractors, lawyers, and service and trades people who may need or want to process payment transactions from clients they meet during their travels or at off-site locations.

Whether you have a retail, Internet, MOTO, or wireless-based system, or a combination of more than one system, chances are you will see sales increase, and your customer base expand, soon after you begin to accept credit cards. Speaking with a merchant account representative can help you identify the solutions that are right for your small business, and have you on your way to increased profits and business growth.

Karen Zabel is a freelance writer who writes about Credit Card .

Article Source: http://www.marketingarticlelibrary.com

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