Small Business Brief

Business Advice, Financial Services

How to Accept Credit Card Payments as a Small Business

Is your small business meeting your growth expectations? Would you like to start accepting credit cards? If so, this is a redefining move for your company.

Small businesses face myriad challenges in the contemporary business environment. To overcome these hurdles, you need to take innovative measures such as diversifying payment options.

Most consumers today use credit cards to make payments. This is why you’ve to learn how to accept credit card payments as a small business.

A recent survey shows 83 percent of Americans between 30 and 49 years owned a credit card. In the same report, 65.18 percent of respondents aged 18 to 29 years stated they currently use credit cards.

These numbers highlight the importance of accepting credit cards.

How to Accept Credit Card Payments as a Small Business

Your customers will buy more products from your store if you can process credit card payments. It’s a smart move to provide a better customer experience. This also grows your brand’s reputation.

If you already have a brick and mortar store or a website, it’s easy to set up credit card payments.

Here’s a brief overview to get started:

Understand How Credit Card Processing Works

To start accepting credit cards payments, you need to accept customer’s data using a credit card terminal (brick and mortar) or a payment gateway for online businesses.

The system will send the customer’s data to the provider’s processing system. The provider then checks with the cardholder’s issuing bank for the availability of funds.

Credit Card Processing takes seconds and also involves security/fraud checks. If there’re funds and the security checks are clear, the payment goes through.

The system automatically processes these credit/debit transactions for your payment. The processor deducts the applicable interchange fees, and you receive the balance in your bank account.

Set Up a  Merchant Account

You need a merchant account for accepting credit card payments. This is where payments from credit cards go.

It’s an ideal option for higher-volume sellers as the credit card processing fees are lower.

However, you will pay multiple fees for a merchant account. These include credit card processing and transaction fees, account fees, early termination fees, a gateway fee, and fraud prevention fees.

Opt For Payment Service Providers (PSPs)

For a small business, you need an effective yet affordable way to accept credit cards. Payment service providers (PSPs) are a smart alternative.  These allow your small business accept credit cards without a traditional merchant account.

PSPs offer simple, flat-rate pricing, month-to-month billing, no fees for basic services, and all-inclusive customer support.

A reliable all-in-one solution such as Dynamics GP Credit Card Processing is ideal for low-volume users. It reduces costs and improves convenience.

This system also offers a secure payment option and guarantees PCI compliance to prevent cyber fraud.

A good PSP comes packed with features ranging from the in-store pickup, e-commerce stats, lead capture, and real-time shipping calculator.

Other features include products and coupons, individual user-permissions, automation of processes, among others.

Credit Cards & Your Small Business

Running a small business is tough, but if you adapt to the times, you’ll remain competitive.

Learning how to accept credit card payments as a small business is a creative strategy in a competitive business environment. Using the best payment service provider unlocks your business’ potential by boosting customer loyalty.

Check out the payment processing options section of our blog for more tips on credit card payments and business.