How To Set Up Credit Card Payments For A Small Business
Learn how to set your business up for credit card success with our tips on how to choose the right equipment and processor.
With cash payments declining in popularity and more people using credit and debit cards than ever, it’s extremely important today for most businesses to be able to accept these types of payments. Put simply, being able to accept credit and debit cards will increase your overall sales volume.
Fortunately, adding credit card processing is easier than ever. Payment service providers (PSPs) like Square can approve you for an account and allow you to start processing payments in as little as a day or two. Traditional merchant accounts, while requiring additional time and paperwork to set up, are also still a viable option and can save you money overall at higher monthly processing volumes.
In this article, we’ll discuss the various options for taking card payments, including the required hardware and software you’ll need to get started. We’ll also explain how to set up credit card processing for your small business.
Finally, we’ll point you to some additional resources that can help you learn more about the convoluted world of payment processing, allowing you to make more informed decisions about how to accept credit card payments for your small business.
Table of Contents
3 Ways To Accept Credit Card Payments As A Small Business
All of the best credit card processing companies can accept credit card transactions either in-person or online.
Another subcategory of in-person transactions, mobile payments, has become more popular in recent years as wireless terminals and mobile card readers have allowed businesses to accept payments virtually anywhere.
How Much Does Credit Card Processing Cost?
While credit card processing isn’t cheap, it doesn’t have to be overly expensive — if you select the right provider for your business. This involves choosing not only the right company but also the right type of provider for your business.
Here’s a brief rundown of the primary considerations in choosing a credit card processor:
5 Steps To Setting Up Credit Card Processing For Small Businesses
Selecting a payment processor for your business requires methodically going through a list of steps. You’ll want to do some careful research into your options before choosing a particular provider for your processing needs. However, it’s equally important to closely monitor your actual costs once you’ve been approved for an account and started accepting credit card payments.
While it would be impossible to come up with a specific number, we estimate that at least half of the small businesses in the United States are overpaying for credit card processing. That’s usually because they didn’t follow the step-by-step approach we’re going to outline below and instead just accepted the word of the first sales agent who walked in the door. Read on if you’d prefer to avoid joining this unfortunate group.
What’s The Best Way To Accept Credit Cards For Your Small Business?
Due to all the variables involved, there is no one-size-fits-all “best way” to accept credit cards for every small business. However, by following the guidelines we’ve provided above, you should be able to find a suitable credit card processor and the right equipment for your business. Whether you are hunting for one of the cheapest credit card processing companies or a processing company specifically designed for startups, you should find many great payment processors that work with your needs.
What is best for your business depends on what you plan to sell or what service you plan to provide, the seasonality (if any) of your goods or services, your business’s monthly processing volume, and other factors.