If you own a small business at this point, then growing your business is obviously at the top of your mind. For your business to grow at a steady pace, however, you will need to take the necessary steps to achieve that. One such step would be to start accepting credit card payments as it can make your business more competitive. Before taking this step, though, you must know whether or not your business is ready for it. Remember, there will be an initial upfront cost and additional fees. More importantly, you will have to get ready to do some extra paperwork.
In this article, we will discuss what you will need to know with regard to credit card payments for small businesses. While accepting credit card payments could get you a lot of customers, it can also take quite a bit of money from you as there are additional payments you will need to make on a monthly basis – it is essentially an added billing statement. For this reason, you will need to assess if your business is truly capable before taking this step.
Firstly, you will need to set up a merchant account. A merchant account is essentially an agreement between you, your bank, and your payment processor of choice. You can do this through a payment processor – and it should be an account that is different from your bank account. This account will be used to process and settle credit and debit card transactions.
Secondly, know that accepting credit card payments would mean additional fees – one of which is the processing fee. With a merchant account provider, expect charges for their services rendered – they charge a certain percentage of each purchase made and an additional transaction fee with certain types of charges.
Thirdly, you will need to invest in a point-of-sale terminal (POS) – most especially if you have a physical store in which you would like for your customers to use their card. A POS terminal is the most common way to accept a credit card payment as it accepts it in-store, usually when the cardholder is present. Today, there is a wide selection of POS terminals available. From small terminals to large terminals – you are sure to find one that best suits your business.
Lastly, if your shop is online, then you will need a payment gateway as it connects your online store’s checkout page to processing payment. While some processors like PayPal have a built-in payment gateway system, other businesses have to have a separate payment gateway from their processor.
Whether your store is online or not, though, you need to think twice before jumping on the ‘accepting credit cards for small businesses’ bandwagon. Yes, it does make your business competitive – but just how competitive will your business be if you do not have more sales? Hence, before coming to a decision, check if your business is ready to take on extra fees and get ready for the extra work. It might all just be worth it.
Get ahead of the competition by accepting credit cards, but make sure you only get the most reliable one. Check our tips at creditcardprocessor.company. Also, visit https://www.sba.gov/blogs/best-credit-card-processing-small-business-owners for more small business quick guides.
At creditcardprocessor.company, we teach you the A-Z on how you can accept credit card payments. Step up your game and be ready to rake in more profits.