How to take credit card payments
An ever-increasing number of consumers are using credit cards instead of cash. Convenience and safety are the main advantages of making purchases using a card. When used correctly, credit cards help spread out expenses, earn rewards, and improve the credit score. If you want to increase cash flow for your business, expand your payment options to include credit cards. Consumers won’t shop at a place that doesn’t allow them to use their favourite payment method. Take credit card payments to show that you’re not a relic from the past. Most likely, your competitors accept credit cards. You don’t want to fall behind, do you?
Allowing customers to pay with Credit Cards brings many benefits
Cash may be the simplest payment method, but it’s not the most popular. According to UK Finance, there were 284.1 million credit card transactions in February. You can accept credit card payments no matter the size of your business, and it’s definitely in your best interest. To help you make the right decision, here’s a list of benefits to consider:
You can speed up payment times and reduce delays. Accrued revenue helps make payroll, pay vendors, and keep the lights on. Payment delays can be prevented by implementing credit card payments. You’ll be funded for the transactions within 24 to 48 hours. So, you can ensure a steady cash flow and plan your investments.
Credit cards are exceptionally secure. A cash-rich business runs the risk of being careless. Cash is easy to lose, whether due to theft or human error. Credit card payments have greater security. Finance teams can access accurate information and real-time visibility into the company’s cash flow.
You can legitimise your business in the eyes of sceptical consumers. Businesses and customers approach the same interaction with different perspectives. Believe it or not, there are still wary buyers. Take credit card payments and legitimise your business in the eyes of customers. By offering consumers several payment options, you can achieve much-needed flexibility.
If you’re ready to accept Credit Card Payments, follow these steps:
Is success possible if you’re not tech savvy? Yes. Setting up credit card processing is simpler than you think. You’ll need a business bank account to accept any type of electronic payment. Some services provide credit card processing without the need to open a separate merchant account. Are you ready to get started? It’s important to take the necessary steps when accepting credit card payments as a business. These steps are:
Decide Between the Options of Taking Credit Card Payments
If you want to accept credit card payments, you can do it in one or more ways. The best choice depends on your budget and the features needed.
In-person. You’ll need a POS system and a credit card terminal or reader, which can process transactions on its own. A card reader is crucial, regardless of the size of your business. Credit card machines for small business are available either on a monthly contract or on a pay-as-you-go basis. They accept magnetic stripe cards, contactless cards, and EMV cards.
Online. If you’ve set up an e-commerce store, you’ll need a combination of a merchant account and a payment gateway. Customers can submit their card information securely. Processing services used by online retailers make integration simple. If your website isn’t fit for payment integration, you’ll need an off-site solution.
Using a mobile card reader. If you run your business from the road, you’ll need a mobile card reader. Essentially, the card reader connects to a tablet or smartphone to accept payment from credit cards. Customers feel your company is more established and secure. People want to make instant payments at the tap of a card.
Over the phone. Many people actually prefer over-the-phone payments. They want to pay there and then. You’ll need a merchant account that gives access to a virtual terminal or POS system, which can process card-not-present transactions. It’s useful for businesses that accept high-value transactions or experience a high purchasing volume over the phone.
Select a payment processing system
The customer’s credit card and account details must be processed to authorise the payments. This takes place strictly behind the scenes, yet you must hire a payment processor to make it all work. Both merchant accounts and payment service providers enable this process. A merchant account is a particular bank account that allows you to receive and process electronic payments. A payment service provider is an alternative solution to managing payments. You can accept credit card payments without setting up a merchant account. Selecting a payment processor is a decision that affects user experience, meaning that the wrong option will negatively affect your conversions.
A payment service provider charges lower processing and transaction fees. There are several payment processing companies to choose from, and it can be challenging to decide which is the best. If you’re planning to take your business online, look for companies that offer online payment solutions. If you want to be able to accept credit card payments on the go, you’ll need a mobile payments option. Customers want uncomplicated and efficient shopping. Check the number of years the company’s been in business, the quality of its services, and the level of support. You can acquire additional services like fraud prevention and chargeback management.
Get the right point-of-sale hardware and software
Finally, yet importantly, have the necessary hardware and software in place. Most payment processors supply the equipment you need to get started for accepting credit card payments. Modern card readers can process transactions a lot faster. Depending on the device you get, it might be powered by itself or require a mobile device to become functional. Credit card machines are typically designed to be wireless, so they’re not tied to a physical location. They accept payments to their specifications and deposit the funds to use later. You may be charged a setup charge, but it’s not common practice. Payment processors deliver the costs upfront, so you know what you’re getting into.
