Once you decide to go into business for yourself, there are a lot of things that you need to have in place to be competitive and to meet the demands of your customers, including how you process their payments - some of which require a variety of different payment needs. Therefore it’s important to have some of the most common payment processing systems available and set up in your business. If you are a small business and need to set up and process payments properly and quickly, below is a credit card machine guide for small businesses that you may find helpful.
Advantages of Using a Credit Card Payment Processors
Other than the areas mentioned above, some other major advantages of using a credit card processor include receiving payments
• in person
• over the phone
• from mobile users
• that are reoccurring
Nonetheless, you first need to determine if you will need to process payments using one or all of the methods mentioned above. But before you begin, please keep in mind that there are some basic preliminary steps that you will need to take before you can process credit card payments. Those include
• Obtaining a Tax ID / EIN Number
• Setting up a business bank account
• Obtaining a fictitious name (for sole proprietors)
• Reserving a name (for those setting up a corporation or LLC)
• Setting up a merchant account
• Considering which payment processing system is best for you
When making decisions about the type of payment processors that you will need, keep in mind that the fees for processing credit card payments in person are a lot less than receiving payments online. Mainly due to the decreased risk of fraud that is associated with online sales.
Additionally, you need to understand that credit card processors are also different as well. Some provide an all-in-one solution that supports all forms of payments from one main account; whereas others, such as bank merchant services, often require separate accounts.
More Specific Steps Involved When Processing Credit Card Payments
More specific steps for setting up your small business to process credit card payments consist of the following:
1. Set up the payment processing throttle
Businesses with payment processing throttles that perform quickly can offer more options and far better customer service to their customers.
2. Ensure That Security is Set Up
Make sure your terminal is equipped with the proper, most updated security protocols (PCI-PTS), ideally those that sports EMV and NFC technology to process payments without business owners physically being present.
3. Determine which type credit card processing you need to offer your customers. In doing so, consider the following:
• When processing payments under $30,000
When processing payments that are on average $30,000 in credit card sales or less, consider using the Square. It is the most widely used and practical solution for processing sales within this price range. (The advantage is that it is easy to set up, there are no monthly fees and the rate is 2.75% when making credit card transactions in the store.)
• When processing payments at on-site locations
When processing credit card payments at your physical site location, you will need to purchase a physical credit card terminal, also referred to as a POS System or a credit card reader. You will also need a merchant account, preferably with a retail merchant services provider.
• When processing mobile payments
When processing mobile credit card payments, you will need a mobile credit card reader, tablet or a smartphone as well as a merchant account. One of the more popular items to use with these devices is the Square.
• When processing payments by telephone
When processing payments by telephone, you need to obtain an online-based virtual terminal along with a merchant account that has either an all in one provider or a secure payment gateway.
• When processing Online payments
When online payments are processed, a virtual terminal often referred to as eCommerce will need to be set up. Online payments require a payment gateway that connects your payment processing system to your website’s check out page.
To conclude, also remember that it’s important to make sure that you are always thinking about ways to stay effective and relevant concerning your payment process equipment. That way you can continue to meet your customer’s payment processing needs as they change from year to year.