Small companies may take credit card payments using a smartphone app by utilizing an online merchant gateway like New Payment Innovation, by setting up a POS system with a merchant account, or by deploying a mobile card reader. Small companies may benefit from learning how to take credit card payments by increasing sales, improving cash flow, and providing a better customer experience. However, according to a recent research, 55 percent of small companies do not accept credit card payments.
First, figure out how you’ll let your customers pay with a credit card. You may take credit card payments in one of three ways:
You’ll need to join up for an online payment gateway like New Payment Investment to take credit card payments online. These services function by taking care of your clients’ online payments and charging a charge for each credit card transaction your company accepts. You probably already have access to online credit card payment solutions if you utilize a cloud-based accounting solution with app connections.
A point-of-sale (POS) system is required to take credit card payments in-store using card payment machines. To handle credit card payments in person, a POS system consists of hardware (card swipe machine) and software. Customers may use the credit card machines to enter or swipe their credit or debit card, and the transaction will be authorized or refused instantly. If a transaction is accepted, the monies will be received by your merchant account and sent to your company bank account within a few days.
A mobile card swipe machine is required to take mobile credit card payments. A mobile card swipe machine is a small gadget that connects to your smartphone and works in conjunction with a credit card app to take credit card payments everywhere there is an internet connection.
Accepting credit card payments gives your customers more freedom and convenience while also benefiting your business. The following are some of the advantages of taking credit card payments for small businesses:
Accepting credit card payments is a feature that might help you attract new customers and increase revenue. Accepting credit card payments can enhance sales for a firm that sells things since customers prefer to spend more when they pay with a card.
Giving your customers a variety of payment alternatives, card payment machines, improves their experience and increases loyalty. Many customers choose to pay using a credit card since it allows them to process the payment quickly and simply online rather than having to fill out and submit a check.
Unlike checks, which can take anywhere from five to ten days to clear via your bank, credit card payments machines are handled promptly. Within a day or two following the transaction, credit card payments are usually processed and the funds show in your company bank account.
Most credit card processors make it easy to take credit card payments with only a few clicks, saving you time. You won’t have to spend as much time asking payment for invoices or going to the bank to deposit cheques.
Accepting credit card payments can reduce the amount of cash on hand at your business, lowering the risk of theft or loss. Although taking credit cards carries security concerns, fraudulent transactions may often be recovered with the help of a merchant service provider.
The processor charges credit card transaction fees every time a firm accepts a credit card payment. For every credit card payment that is processed, there are two sorts of fees: the processing rate and the transaction fee.
The processing fee is a percentage levied for each payment depending on the average transaction amount for the firm. Every time a business takes a credit card payment, a transaction fee is levied.
Abi is the Marketing Manager for New Payment Innovation. He is also an accomplished blogger having worked in Payment Services for over 3 years.