Card Credit Processing

Handling credit card processing is something most businesses will have to consider at some point if they want to be able to do all the business they can. Even for relatively low-cost items, consumers love to be able to whip out their credit cards to pay. It’s not just a matter of affordability – sometimes a customer simply doesn’t have the cash on them. In these cases, it’s impossible for a store to sell the person so much as a bag of chips without being able to accept credit cards.

There are various ways of setting up credit card processing capabilities. Many start at the same bank they use for their business checking accounts. This can be a great way to get started with accepting credit cards if the bank has a good offer, especially if they handle credit card merchant accounts in-house. Many smaller banks, however, actually have commission-based relationships with outside merchant account providers. These may or may not be a great deal.

For those who choose to go outside their regular bank, there are several options. There are many internet-based companies who claim they can get nearly anyone set up with credit card processing capabilities. Another place many advertisements for these services appear is in magazines aimed at start-up businesses or entrepreneurs.

When seeking a credit card processing company, there is one major thing to look at: Fees. There are many names for these fees, but the important thing is the bottom line. Whether they name a fee a “statement fee,” “processing fee,” or something else, it still amounts to a cost the business must bear – usually on a monthly basis. Along with these types of fees, there will usually be a per-transaction fee. Finally, there’s what is usually known as the “discount rate” – a fee that is taken as a percentage of each transaction. The discount rate is based on several factors, including the industry the business is in, and the credit scores of the company or individual applying for the merchant account.

The next thing to look at is the general reputation of the credit card processing provider. Most are fine, but a few have a reputation for holding back large amounts of money or being slow to transfer earned funds to the bank account of the merchant account holder. Checking for complaints on the internet can save a lot of hassle by letting you know which companies to avoid.

Actually getting set up with credit card processing capabilities is easy. Merchant-account providers are almost always glad to provide all necessary help, since they make money through the transaction fees their customers generate. Most also handle – for a fee – the machines or software needed to actually handle the credit cards, making it easy for new businesspeople to get everything that’s needed in one place.
Accepting credit cards will surely increase the size of the pool of people who want to do business with a company. Checking out the options is well worth it. Chances are there will be a solution to every business’ credit card processing needs.