What you need to do to be able to have people pay by credit card
Many small business owners are aware of the fact that if they accept credit cards on their websites or in their stores they are going to see an increase in sales and profits. The main reason behind this thought is that when you allow people to pay by credit card you are increasing how many people will actually make purchases on your website or at your small business. But something else that not very many small business owners are aware of is that by accepting credit cards you are going to be able to take advantage of two types of specific customers: the two types are impulse buyers and international customers. The reason that you are going to attract your impulse buyers is because you are giving them a way to make a purchase immediately rather than having time to stop and think about it. The reason that accepting credit cards will attract international customers is that it will take care of all of the currency problems that can arise, not to mention it gets rid of the time it takes to send a check. Because of those reasons and numerous other reasons many small business owners find allowing their customers to pay by credit card a great business decision. But the problem is that not every small business owner knows what you need to do to be able to have people pay by credit card.
Here is what you need to do to allow people to pay by credit card.
The first thing that you are going to need to do is to figure out which kind of a merchant account you are going to be using. Currently there are two types of merchant accounts: your own merchant account and a third party merchant account. Each type of merchant account has its pros and cons, so which ever you choose will need to be right for your business.
If you choose a third party merchant account you are going to need to research the third party merchant account providers to see which is the most reputable and offers you the most attractive fees for your transactions. Then follow the instructions that those providers give to you for accepting credit cards.
If you are going to be using your own merchant account the first thing that you are going to need to do is to open up a merchant account at a financial institution. Like third party merchant accounts personal merchant accounts are going to vary depending on who you go with so be sure to check around.
When researching the various financial institutions that offer merchant accounts you are going to see what kind of fees and charges they are going to apply to your transactions. Many times it is best to go with the company that offers the lowest per transaction fee, especially if you are going to be doing a lot of business. But one thing to watch out for is that most financial institutions that offer low fees per transaction also usually charge a small set up charge.
Once you have picked out the financial institution you wish to use you are going to need to go in and actually apply for the merchant account. Many institutions will run a credit check on your company before allowing you to open a merchant account so make sure that you are prepared.
Know that you have opened a merchant account you are going to need to follow the instructions for processing card charges that are given to you by your financial institution. Keep in mind that these instructions will vary depending on which financial institution you go with.