09 Dec The Basics of Payment Processing
New business owners or small businesses that only accept cash or checks may be wondering how they can start taking credit card payments. Credit cards payments are a great way to bring in more revenue and to increase sales that are made in the business. The business can also build a website to offer their products on and process credit card payments. Businesses that handle services instead of selling products can also benefit from merchant accounts with their online sites. They can set up payment arrangements with their customers and have them login to their website to make a payment with a major credit card. Any credit card payments made to the business would link back to their account, and the business would receive their money immediately.
Credit card processing is quite simple. There are several ways that it can be done. The merchant account can be set up online to process payments from an online site. There are also card readers that can be used on a computer or smartphone that will allow the business to swipe the credit cards. Once the credit card is swiped, the business will be able to put in the amount that is going to be charged to the credit card. Within a few seconds, the employee will be able to know if the credit card will be approved or declined for the purchase.
Each transaction that is processed through the card reader will be charged a fee. The fee amount is going to be a small percentage of the charged amount plus a set fee. The fees are based on the brand of major credit card the customer is using. Each credit card processing company sets their own fees and will explain the fees before the services start. Most companies will provide the card readers to the business for free. They may have a set amount of readers that they will provide the business.
When a business starts accepting credit cards, they will find that more customers are going to be able to buy their products or use their services. Individuals are starting to do away with carrying cash. Bank accounts are giving individuals the option to use a debit card to link to their bank account instead of having to write checks or carry cash. If businesses wants to see a huge increase in profits, they should highly consider getting credit card readers and starting merchant accounts.