If you’re an owner of a small business, you may think credit card processing, even small business credit card processing, isn’t for you. Many small business owners still deal in cash. But in today’s world, many small business owners are using credit cards more and more.
The pros of utilizing small business credit card processing are many and varied. We have taken the opportunity to outline them for our clients below, as well as explain the basics of credit card processing terms:
Merchant Accounts
A merchant account is an account that allows you, as the merchant, to accept credit cards. When you run a credit card transaction, the proceeds are deposited into the merchant account.
You can sign up for a merchant account through a bank. Nearly any bank will provide a merchant, or “business” account. If you are using a small bank, they will typically provide a merchant account to a third party for free, since they may not provide that service themselves. Larger banks have their own merchant accounts.
Another way to get a merchant account is through salespeople, which are independent organisations or ISOs. These are the people who will cold call small businesses and help them set up merchant accounts. These people may try and push a certain type of merchant account so make sure that the one you select is the right one for you.
An additional common way to set up your merchant account is via the internet. It is a convenient, fast way to get set up and have your research done for you.
Accepting Credit Cards Grows and Simplifies Sales
Small business credit card processing helps you increase sales and grow your business. More and more customers are using credit cards in everyday transactions, so by saying that your business does in fact accept credit cards, you are also providing great customer service for your clients. Additionally, accepting credit cards simplifies collections. You can make sure that you get the credit card number up front, before the customer pays. Just state in your billing policy that if they do not pay within 30 days, that you will charge that card.
You may be resistant to setting up a small business credit card processing system, because you are worried about fees—and rightly so. You have to be careful when deciding which system is right for you. As long as the system you choose is a good fit, the fees should be relatively small.
Keep in mind that your customers will also be more likely to do business with you again if they know that they can easily pay with you—another pro to becoming a business that accepts credit cards.
Be sure to look up testimonials for processing services. After all, you want the company that is handling your credit card processing portion to be reputable. Lastly, be sure to follow the aforementioned tips, and you should be well on your way to receiving more business.
