Accepting credit cards can make a big difference to your bottom line. If you are opening a retail establishment or a restaurant, it's hard to compete unless you accept them. If you have an ecommerce website, it's absolutely essential. Even if you are providing a service as a consultant, accepting credit cards can help you receive payment faster.
Step 1
Draw up a list of estimated transactions per month and where you plan to do them. Evaluate whether you need a system that allows customers to add tips after the initial authorization has been run.
Step 2
Establish a business checking account in which you'll accept processed transactions.
Step 3
Join Pay Pal to accept credit cards on a website if you don't expect a lot of volume. There are no set up, monthly or cancellation fees. You can accept debit cards, credit cards or even bank transfers. The transaction fees are reasonable, up to 2.9% plus $.30 per transaction. The process is not as convenient for your customers as direct processing, and you have to request that the money be transferred to your commercial account, but Pay Pal is a recognized brand and you can easily set up and verify a shopping cart.
Step 4
Accept credit cards directly if you anticipate higher volume on a website. You'll need a gateway to do the processing , such as eProcessingNetwork, which allows you to build a shopping cart. You'll also need a merchant bank, such as Redwood Merchant Services, to handle the receipt of the transactions. This invariably requires a monthly minimum that costs at least $35 a month in addition to the transaction fees. This is a convenient option if you are working the trade show circuit because you can always process the transactions on site with a laptop from your show booth. Transactions will deposited to your business checking account within a day or two.
Step 5
Set up a dial-up card reader system with a local commercial bank for a retail establishment. This is the fastest way to get your cash if you have a checking account at the same bank. Costs vary, so comparison shop.
Skill: Moderate
Ingredients:
- Landline phone
- Internet access
Warning: Make sure that your refund policy is prominently stated with every transaction to avoid disputes.
Keyword: credit card processing
