How Your Small Business Can Start Processing Credit Cards?

how your small business can start processing credit cards

Anyone can put up a small business. However, there are certain things to consider if you want to run a successful small business. This includes creating a good business plan and setting up a solid financial structure. People tend to overlook the latter because they believe prior research and catering to their target audience guarantees success.

Having a good financial structure ensures you have a plan to generate revenue, invest money, and sustain your business. Part of this involves providing your customers with various payment options for convenience and seamless transactions. One way to do so is by processing credit cards, which we will help you with below.

How your small business can start processing credit cards?

Determine what credit card brands to accept

The first step is to narrow down the credit card brands your small business will accept. Each brand has a corresponding rate and interchange fee, so accepting multiple credit cards also means having more fees to pay.

How your small business can start processing credit cards - Determine what credit card brands to accept

If your small business is relatively new, it is best to stick to accepting fewer credit cards—at least when you’re still starting out—to avoid having to pay a lot of fees. The most popular credit card in the UK is Visa with a market share of 84%, followed by Mastercard with 14%. American Express and Diners Club are not used as much (unless by tourists), but they’re still used within the region.

Choose a good payment processing provider

After deciding on credit cards to accept, it’s time to choose a payment processing provider. These are third parties that will help you accept credit card payments by processing transactions. Choose a payment processing provider that is secure enough to prevent fraud, convenient to work with, and transparent with their terms.

Choose a good payment processing provider

Their mobile card machines should be easy to set up, compatible with credit cards you wish to accept, and versatile enough to shoulder contactless payments. Likewise, online payment solutions—like those through e-commerce sites—should keep online data safe, be easy to navigate, and supply clear terms and conditions that don’t include hidden fees. All of these conditions will ensure that your business and customers have the best possible payment experience.

Open a merchant account

Once a provider has been chosen, open an account with them. Specifically, a merchant account is what you’ll need. This is what will process card payments between your customer’s bank account and your business’s bank account for a small rate. There are three types of merchant accounts: aggregated, dedicated, and high-risk.

Open a merchant account

For small businesses, aggregated merchant accounts are the best option because it collects several payments and processes them as one transaction, resulting in lower rates. When opening a merchant account, you will be asked for details such as your business type, age, and credit history, so prepare these.

Apply credit card processes to all your stores

Once your merchant account has been approved, you can start processing credit card payments. Make sure that all of your physical stores have the necessary equipment like mobile card machines and that they start accepting card payments at the same time to maintain consistency.

Apply credit card processes to all your stores

The same goes for your online stores should you have more than one platform. Lastly, make sure that all of your employees know how to use card payment equipment so they can assist customers and answer their questions as needed.

Accepting credit card payments not only provides convenience for customers, but also for your business. With these tips, your small business can start processing credit cards today.