Credit card processing service is the authorized service provider who accepts credit cards. Acceptance of credit cards can be done in-person, online, over the phone or through mail order. Credit card processing also known as Payment processing or Merchant account services. For other than business purposes, we use debit and Credit Cards. To accept credit cards we use Card readers, Payment Terminals and Credit card machine. Sometimes we also using mobile apps for payment processing.
Credit Card Processing is the service that allows business or Merchants/ Retailers to process credit and debit card transactions and to provide their customers with services such as on-line purchasing and Point of Sale (POS) terminals.
There are different types of Credit card processing services providers available. You can search online or ask your bank or financial institute for the best credit card payment processing services provider in your area. Some common names you might find are First Data, CyberSource, Elavon, etc… There are also lots of less known companies that provide this service.
Once you have a credit card processing service provider, they will ask for the following information:
Name and Address of your business Bank Account information to link to your processing account. Tax ID number. Type of business (Sole Proprietorship, Partnership, Corporation) If it's an LLC, Trust or Non-profit Organization. Also they will ask for the following document (which is different per each company):
If you are using Square or Paypal, it might be easier to use their services. There are lots of good review about them online. They don't ask for any contract neither provide monthly statements, which makes it easy to manage your account and save money.
If you are setting up for your business, there are some fees you have to consider when choosing which service works best for you. The first thing is the rate per transaction. The costs might vary depending on how many transactions you make in a month will determine if it's really worth it or not. Some companies charge higher rates, but they provide additional services such as Call back, recurring billing and recurring payments. Also, some companies provide a discount to new customers for the first two years.
In order to accept credit cards from your customer you will need either an internet enabled computer or mobile device with web browser or Point of Sale (POS) terminal that can connect directly to your account. There are also other options available for merchants, such as Smartphone attachment or Stand alone device.
Credit card processing services can be expensive to set up but well worth it in the long run. You can save money by having your service provider send you monthly fliers/emails that provide discounts to their customers. Once our business grow, we may need to switch providers and we receive a lot of good deals from our current credit card processing company.
To start a credit card processing service, the first thing to do is to apply for a merchant account. "A merchant account can be thought of as a type of bank account that businesses use in order to accept credit cards from customers". There are 3 types of Merchant Accounts:
There are also other options available for merchants, such as Smartphone attachment or Stand alone device. Most Credit Card Processors will provide you with either a free or low cost equipment. However make sure you read the contract thoroughly before signing it because there are some companies which require you to keep their equipment.
In order to accept credit cards from your customer you will need either an internet enabled computer or mobile device with web browser or Point of Sale (POS) terminal that can connect directly to your account. There are also other options available for merchants, such as Smartphone attachment or Stand alone device.
When choosing which service works best for you, it all depends on what equipment you have available at your business location. Point of sale terminals are the easiest way to accept credit cards from your customers, but if you don't have one, you can use a Smart Phone attachment or an Android device with an internet connection.
You will need to contact your credit card processing service provider for instructions on how to setup your account with them, but it is usually pretty straight forward and easy to understand once you have all the necessary equipment. Most companies will provide you with a SIM card so that their equipment can work immediately when plugged into existing internet connection. If you are using the internet connection in your business, you will need to have technician come do some wiring.
Once your account is setup and merchant number assigned, you are ready to take credit cards from your customers. Most companies provide free training on how to use their services, which makes it easy to understand.
