If you're looking to accept credit card transactions for your small business, you'll have to follow some steps. Once you have the system in place, it's fairly simple to manage and oversee.

Decide How You'll Accept Credit Card Payments

• Online
• In-person
• By using the mobile card reader
• On the phone

The method you select will depend on the kind of business you manage. For instance, if you operate a brick-and-mortar retail establishment, you could accept credit cards in person at the point of purchase or on the internet if you've set the foundation for an online store. However, using the mobile card reader could be the most appropriate option if you have an online business.

Choose a Payment Processing System

If a customer provides you with their credit card to make a payment on the bill, it's more than just swiping or inserting the card. The card's information and the account's details must be examined and processed electronically to ensure that the transaction is authorized. This happens digitally, behind the scenes, in just a couple of seconds; however, you'll require a payment processor to complete the work.

Suppose you wish to accept credit card transactions; you can do this using one method: credit card processing or paid services. Merchant accounts are accounts you establish through a bank that allows credit card transactions. The payment service provider is businesses that allow customers to take credit card transactions without setting up an account for merchants.

Of the two options, a payment service provider might charge less processing fees and transaction charges. It could work for you if you are an older company with smaller credit card transaction volumes. However, if you have an enormous amount of transactions using credit cards and a merchant account, it might be a better option to control your credit card purchases.

Payment Software and Hardware

If you already have a way to process credit card transactions, you may require updating the software at your point of sale and hardware to accept credit card payments. For instance, if you own a brick-and-mortar store, purchasing a checkout program to take card payments or installing a chip-enabled reader for EMV at the point of sale is possible. Certain payment service providers also provide the equipment that will need to be installed to accept credit card transactions in stores or use a mobile electronic card reader.

How to Accept Credit Card Payments Online

A lot of small-scale businesses are operating online first or even exclusively online. Whatever kind of business you run, providing your customers with the option to pay using their credit card online can provide them with greater convenience and may increase sales. Restaurants, shops accepting online orders, and digital service companies would not be able to run without this feature.

Offering this service to your clients isn't difficult. If you are planning to accept credit cards on the internet, it is also necessary to establish a payment gateway to facilitate that. This is typically part of an account for merchants or plans for service providers.

You'll require a storefront. The most popular method of getting one is to register for accounts with an online platform provider. Credit card transactions are such an essential aspect of modern commerce that all major eCommerce platforms will permit you to use credit cards as a means of payment. Be aware that there's usually cost involved with this. Online credit card transactions will typically incur higher processing costs than in-person transactions.

Benefits

Giving your customers the option to pay using credit cards can bring about many benefits for your business, resulting in greater growth. In the words of the National Federation of Independent Business, there are numerous advantages to accepting credit cards. The main reasons for accepting credit cards are:

• Improved cash flow will speed payments and decrease the time it takes to pay.
• Your business' legitimacy in the eyes of your customers
• This could increase sales as you will offer your clients more options to pay

If you're still not convinced about the concept of accepting credit cards, take a look at the rise of credit card transactions when compared to other methods of payment. The research by Deloitte indicates that credit cards comprised more than $4 trillion in total payments within the United States in 2018. From 2016 through 2018, transactions made with credit cards increased while the proportion of Americans paying cash fell.

The trend could continue if the demand for contactless or digital payments rises. In the wake of the recession of the year 2020, as an example, 64% of small-scale businesses reported that they were trying to convince clients to avoid using checks and cash instead of using digital payments, including credit cards. Credit cards may be an even more widespread method of payment in the future as Americans make a larger amount of their transactions online, even when purchasing from brick-and-mortar stores like local eateries that offer delivery services or shops that offer curbside pickup.