How to Accept Credit Card Payments as a Small Business?
Credit cards and automated tax reporting software are an integral element of the modern world, love them or hate them. As a result, to run a successful small business today, you must learn how to take credit card payments from your clients. According to GlobalData’s Payment Cards Analytics, card payments in the Philippines would increase by 15.4 percent to PHP2.1 trillion (US$43.4 billion) in 2021. Between 2020 and 2024, it is expected to increase at a compound annual growth rate (CAGR) of 12.3 percent, reaching PHP2,872.5 billion (US$59.8 billion) in 2024. Not satisfied? Here’s more information on why and how small businesses should accept credit card payments.
Find a small company credit card processing provider
Numerous payment processing companies provide comparable services. Think about how much of your credit card processing will be done in person, online, and on the phone. HSBC Red Mastercard, Citi Rewards Card, RCBC Flex Visa, Security Bank Next Mastercard, EastWest Platinum Card Transaction types, and card networks all have different processing costs. Look for the supplier with the lowest affordable prices for the kinds of transactions and credit cards you’ll be processing.
Open a merchant account
Create a merchant services account with your preferred credit card processor after selecting. You may already use well-known services like PayPal for personal and business transactions, but you’ll need to open a separate business account for your business to accept credit card payments. Typically, opening a merchant account entails submitting information about your company and establishing a connection with the bank account where prices will be made.
Install payment machines
Installing payment terminals across your company is the last step in accepting credit card payments. If you operate a physical store, this phase entails acquiring and configuring hardware, such as a card reader and a point of sale accounting system (POS), if you don’t already have one. The market is flooded with card readers that enable you to accept payments through swipe, inserted chip, or contactless tap.
Selecting a payment processing system
There is more to accept a customer’s credit card payment than just swiping or inserting the card. An electronic evaluation and processing of the customer’s card and account information is required to authorize the cost to you. All of this takes place instantly behind the scenes digitally, but to make it all happen, you must cooperate with a payment processor.
You open a merchant account with a bank to receive payments made by credit card. Companies called payment service providers to let you take credit card payments without opening a merchant account.
Software for accepting credit cards in place
You may need to update your automated tax reporting software to take credit card payments after you have a system in place for processing credit card payments.
For instance, if you own a physical store, you might need to install an EMV chip-enabled card reader at the register or buy checkout software to accept card payments. Some payment service providers will also give you the tools you need to start accepting credit card payments in-person or on the go.
Brick and mortar stores, on-site service providers (like plumbers), and mobile business merchants (like food trucks or farmers’ market sellers) can benefit from in-person credit card processing. To complete these transactions, the consumer must show their credit card. In-person transactions often have lower costs than other transactions since there is less chance of fraud when the cardholder and card are both there.
Enterprises that depend on online credit card processing include:
- E-commerce stores
- Restaurants that take online orders
- Businesses that offer digital services
Processing costs for online transactions are often higher than for purchases made in person. You’ll need a payment gateway and a digital storefront, such as an online store or website if you wish to accept credit card payments online.
Processing charges for credit cards for small businesses
Credit card processing companies charge fees for the services they offer, such as performing fraud checks and confirming with the cardholder’s bank that funds are accessible. When a consumer swipes, taps, or dips their credit card, the payment terminal immediately initiates these security checks.
Where to Go?
Hope, that now it will be easy for you as a small business to accept payments online. For the best help, you can seek Susan.one. We offer complete financial accounting solutions by offering automated tax reporting software for the best business help. Feel free to visit their website for more details!