Are you a business person and you are yet to start accepting plastic money in your business? You are lagging behind. It’s about time you embraced merchant services for credit cards processing. Clients recently aren’t comfortable with carrying huge sums of money when going to shop. The fear of losing it to thieves or other unexplainable circumstances is huge.
They now use credit cards. For them to use them in your business, you need to have credit card merchant service. This is one way of growing your business in this day. There are many advantages of letting your customers enjoy the convenience of paying via card or mobile phones.
You need to know the following players before getting into it:
- Merchant bank: This is the financial institution that will give you the merchant account. It will handle the transactions that will be done by card at charge known as discount rate.
- Processors: The third party that your merchant bank can partner to delegate their responsibility. They are in control of your relationship with other players.
- Issuing bank: The bank that issues the credit card to the final user.
- Card payment brand: These include; MasterCard, Visa and American Express. These are card associations also known as Interchange. They came up with the rates that the banks are entitled to impose on a transaction and the rules governing clearing and settlement of a transaction. Interchange fee is what they charge and share it with the issuing bank.
Once you have all this figured out, you can start the card processing. Pick your processing service provider carefully for they are many available in the market.
- Find one that is ready to support you through the difficult start. One that won’t run when problems come but is ready to help your business grow, an active partner.
- Find out all the fees that may come up when dealing with credit cards. It’s also good to find out whether you’ll be charged to end association with the provider
The processor is the person to help you open a merchant account. This is largely dependent on the type of business. You have different options of accepting the credit cards;
- Point of sale
- Tablets or mobile phones
To help you avoid problems that are common with card processing,
- Learn all terms and conditions in the merchant account agreement. This includes fees and charges.
- Keenly check the expiry of cards before processing them
- Accept cards for all sizes of transaction. Putting a minimum limit or a maximum one can cause problems.
- Learn about fraud screening products and get them on board.
- Avoid splitting transactions as it puts you at risk of chargeback especially if it’s into smaller transactions.
- Customer issues are a priority.
- Do not run through the merchant account, your personal card.
- Avoid displaying on your receipts the full account numbers.
Credit card services are about convenience. It doesn’t matter what business you are in, credit card merchant services makes transactions efficient for you.
George Morris is a financial and money saving expert mostly known for his analysis of best credit cards rewards scheme. Visit his blog to learn more about credit card merchant.