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Accepting credit cards can give small businesses a boost
Running a small business means keeping a tight handle on cash flow. One way to facilitate the movement of money in and out of your business is to expand your payment options to include credit cards. Allowing customers to pay via credit card can make managing cash flow less stressful and eliminate the delays associated with waiting for check payments. If your business isn't accepting credit card payments yet, changing that may be easier than you might think.
3. Get your credit card payment software and hardware in place
Once you have a method of processing credit card payments in place you may need to update your point of sale software and hardware to actually accept them.
For example, if you run a brick-and-mortar business you may need to purchase checkout software to accept card payments or install a card reader that's EMV chip enabled at the checkout. Some payment service providers will also supply the equipment you need to get set up for accepting credit card payments in-store or via a mobile card reader.
If you plan to accept credit cards online you'll also need to set up a payment gateway for that. Again, this may be included with your merchant account or payment service provider plan.
Pay Attention to Credit Card Payment Processing Fees
Accepting credit cards through a merchant account or payment service provider isn't free; both charge service fees to facilitate those payments. As you get ready to accept credit card payments, consider how those fees factor into your operating and overhead costs.
If the fees are going to take a serious bite out of profits, you might compensate by increasing prices for your products or services. Or you could add on a surcharge or convenience fee for processing credit card transactions below a certain dollar amount. But be sure you're aware of state and federal regulations on credit card surcharges to avoid any illegal practices.
Running a small business means keeping a tight handle on cash flow. One way to facilitate the movement of money in and out of your business is to expand your payment options to include credit cards. Allowing customers to pay via credit card can make managing cash flow less stressful and eliminate the delays associated with waiting for check payments. If your business isn't accepting credit card payments yet, changing that may be easier than you might think.
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3. Get your credit card payment software and hardware in place
Once you have a method of processing credit card payments in place you may need to update your point of sale software and hardware to actually accept them.
For example, if you run a brick-and-mortar business you may need to purchase checkout software to accept card payments or install a card reader that's EMV chip enabled at the checkout. Some payment service providers will also supply the equipment you need to get set up for accepting credit card payments in-store or via a mobile card reader.
If you plan to accept credit cards online you'll also need to set up a payment gateway for that. Again, this may be included with your merchant account or payment service provider plan.
Pay Attention to Credit Card Payment Processing Fees
Accepting credit cards through a merchant account or payment service provider isn't free; both charge service fees to facilitate those payments. As you get ready to accept credit card payments, consider how those fees factor into your operating and overhead costs.
If the fees are going to take a serious bite out of profits, you might compensate by increasing prices for your products or services. Or you could add on a surcharge or convenience fee for processing credit card transactions below a certain dollar amount. But be sure you're aware of state and federal regulations on credit card surcharges to avoid any illegal practices.
