How to Accept Credit Card Payments – Let Your Customers Pay the Way They Want
Do you have to say no to every customer who wishes to purchase your product / service because he / she presents you with a credit card? How many customers have you lost so far for not being able to accept credit payments? And, how much has your business suffered because your customers did not have a payment option that best suited them?
Owning a business brings every businessman a new challenge every day; increasing sales, raking in profits, minimizing losses, looking after every employee, satisfying your customers and the list just goes on.
Did you know that you could boost business sales by accepting credit cards payments? If you lost two credit card customers out of every ten customers, you lose 20 credit card customers in every hundred; and if you keep weighing the loses, you will realize that your business would have done much better if you were able to accept payments?
How Do You Accept Card Payments?
You must have thought that you were better off accepting cash payments by avoiding the hassles that come with payments until you began weighing your losses. And now that you’ve decided to let your customers pay the way they want, what you need to know is how to go about accepting process.
Let us consider a stepwise approach to accepting credit and debit process.
1. Set Up A Merchant Account
The very first step to accepting credit and debit cards is setting up a merchant account through your personal bank or a financial institution in order to accept cards. Customer payments will get deposited into your merchant account.
2. Obtain Processing Equipment
You will be required to either lease or buy card processing equipment such as a card reader and a modem to be able to accept and swipe your customers’ cards.
3. Online / Mobile Processors
If you have an online store and you wish to accept credit card online or through a mobile device, you can determine the appropriate payment acceptance solution with your merchant processing service provider.
4. Understand the Fees
Merchant accounts do not come free of cost. Being able to accept cards is a privilege for your business which you have to pay for. If your customer makes a payment of $100, depending on the fees charged by your merchant processing service provider, there will be a minor deduction in the amount deposited into your account. However, if you consider the number of customers that purchased your products / services because they had a flexible payment option, the fees to maintain a merchant processing account seems negligible.
Why Accept Card Payments?
Credit and debit cards are becoming increasingly popular. Customers prefer to opt for the convenience, flexibility and security that plastic money offers them over carrying bundles of cash around. Also, if as a business owner, you were to weigh your losses stemming from non-acceptance of credit card, you will find the significant difference alarming. Accepting credit card payments, therefore, not only benefits your customers who are being offered convenience with the option to pay the way they want, but it also benefits your business since you do not lose out on sales.