Credit card processing is one of the most convenient ways of payment for small businesses. It offers convenience for both consumers and merchants, and as a result, card payment continues to grow at a rapid rate more than any other payment methods applicable. Several benefits make the use of credit cards more convenient for both merchants and consumers and are the main reason why it is a must in 2021.
Benefits of Credit Card Processing
Safety
Credit cards are easier to use because consumers do not have to carry cash or checks, which are more vulnerable to losing or theft. It is also easier for the merchants who do not have to make plans of depositing the checks and cash into their bank accounts. Carrying bulk cash to the bank can be very unsafe because it attracts thieves.
Boosts Sales
Credit card acceptance is one of the methods of boosting your sales. Using credit cards encourages consumers to spend more because they do not have to worry about exhausting their cash from their pocket. Some of the consumers end up making impulse purchases than when they are using cash. More spending and impulse buying mean more sales leading to more growth of your business.
Legitimates Your Business
Accepting credit cards from some of the world’s leading brands like MasterCard, American Express, and Visa encourages your customer to shop from you. It tells them that you are committed to quality and you are serious about what you are doing. Credit card processing helps your business penetrate the business world and increases your customers’ confidence in you.
Streamlines Operations
Processing credit card is a good way of keeping a record of transactions and helps in reducing duplicating accounting efforts. It also helps in making reconciliation, tax preparation, and various other tasks easier to manage. It also helps to reduce the amount of money the business has to keep at hand that needs counting, storing, and transporting.
Sets Business for the Future
Accepting credit cards sets your business up for the future as it paves the way for accepting future transactions in digital wallets. Also, a recent development allows consumers to pay for their credit cards using smartphones. That created a lot of interest to the users as it is a fast, innovative, and secure way of making payments making your business charged for the future.
With all these benefits in mind, there is every reason to consider implementing credit card processing for small businesses. However, just like any other investment in the business, you have to calculate your move well to ensure business stability. You have to consider the cost of implementing card processing in your business. That calls for you to do your research to know the cheapest credit card processing companies for small businesses.
Fees with credit card processing
The kind of services offered by each service provider will determine the amount of money you need to pay. However, some service provider charges higher for certain services than others, but that does not mean that they are the best. It is essential when making your choice to consider all the possible options before making your final decision.
Square
One of the best options for small businesses is Square. It offers well-designed and builds hardware that allows seamless operations to take payments safely and securely, whether in person or online. Square also allows over-the-phone payments, and you can create your account in minutes. It offers a flat rate and 2.6% plus $ 0.10 per transaction and no monthly fee. This company is the cheapest credit card processing for mobile payments and POS.
Pricing for online transactions, however, can be more expensive. For keyed-in or invoiced transactions, those are above 3%, and there are cheaper options elsewhere.
Payline Data
Payline data provides a suitable merchant account. The pricing structure is the interchange- plus starting at .2% per transaction plus interchange for in-person payment. Payline is also known for its suite of tools which include a seamless QuickBooks integration, ACH, website integrations, and more.
Payment Depot
It serves well the in-between businesses that do not have very high volume and do not benefit from the low monthly fee of Payline Data. It has an interchange-plus pricing structure and charges a fee depending on the payment plan. You pay 15 cents per transaction for the basic plan and 10 cents for the most popular plans. You will also pay the terminals fee according to the number of terminals you need.
Stripe
Stripe will be the cheapest option when it comes to processing for online businesses. The Stripe payment platform gives you the option of accepting all payment methods applicable online. It offers simple flat-rate processing, which makes it the best for all card processing for online businesses. Its payment is 2.9% plus 30 cents per transaction, and if you have a personal payment, you will have to pay 2.7% plus 5 cents per transaction.
Finding the right credit card processor
With so many options available in the market, it is essential to make your choices wisely. It is also essential to keep in mind that some of the least expensive services may tend to be the most expensive in the end. There are several services that merchant service providers offer, and it is essential to know how each of them will impact your business. Some of the services they offer include security, fraud protection, and transaction reporting, as well as comprehensive customer service.
Regular Review of Services
You cannot manage the costs associated with credit card and debit card processing as a one-time event. That means you have to keep reviewing the cost and also to look and negotiate for better rates. You must therefore schedule a periodic review of your business payment processing services.
Understand Your Risks
It is essential to work out with your partner and establish the most suitable risk tolerance for both of you. As much as you think of your clients and plan to create an easy checkout experience for them, you also have to consider having safe transactions. Talk to your processor and strike the right balance.
As you choose your card processor, you have to consider all the options and evaluate them all, including price, services, and reputation. The most important thing is to exercise due diligence when choosing to ensure you enjoy the best business protection for the best price.
It is essential to know the kind of fees applicable in card processing before you make your choice. These fees include setup fees, interchange fees, monthly minimum fees, and monthly statement fees. Some also charge the early termination fee, which is the fee for canceling your contract before the agreed time.
Whichever processing services you accept, they have to align with the kind of business you are running and the kind of transactions you process. The volume of the transactions also matters if you are to maximize your profits.
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