When it comes to credit card processing for small businesses and accepting card payments, there’s more than just one way SMBs can use to receive payments. But which is the most appropriate option for you and your company or business? This article takes a look at some of the most common methods of processing credit cards available to small businesses to choose from.
1. Credit card terminals
These are what you see in the majority of business places: a piece of hardware that enables businesses to scan a card and then process the transaction. The solution is one that is trusted and simple, even though it does pose a few problems. Firstly, terminals are not always portable, thus if your business or firm is the mobile type, you are going to require a varying type of solution. Secondly, outdated systems for processing credit cards are capable of hindering your business or operations, thus it becomes quite crucial that if you travel the conventional route, you should invest in the kind of hardware that is fully EMV-compliant.
2. Merchant account
Typically, a merchant account is utilized in accepting online payments for business transactions, together with what is known as a payment gateway. This is certainly an excellent option for businesses or firms that receive a large volume of payments, as their expenses could be somewhat on the high side. This method of processing card payments, which you can get from the best credit card processing company, is quite convenient as it frequently doubles as an online as well as an in-store solution. Nevertheless, usually, there are transaction fees, monthly fees, fees that are paid for the payment gateway that is associated with the account, and so on and so forth. These fees sometimes prove to be a bit on the high side for small businesses when added together.
3. Third-party processors
Also known as payment facilitators, these ‘all-in-one’ solutions embody the very best bits and pieces of the merchant account minus the excess fees and the drawn-out sign-up process. Nevertheless, they seem to be a bit more susceptible to being less secured and a bit more prone to fraud. Therefore, it is quite crucial that you should choose only a provider that features the highest-grade encryption that is available at any point in time. And, obviously, any option you decide to go for must be PCI-compliant.
The importance of card processing for SMBs
In the present age and day, you and your business need to accept card payments. Actually, progressively more customers than ever before in the history of commerce are utilizing cards to make daily purchases. In one study that was conducted by JP Morgan Chase, it was verified that about 75% of all consumers admitted that whether or not they buy depended on whether or not the business can accept their preferred method of payment. Credit card processing for small businesses can turn out to be overwhelming, but it does not necessarily have to be. If you desire to test the waters, check out the free trials offered by some providers online. Even such offers comprise full payment processing solutions, automatic SEO, reviews managers, and so on.