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 澳洲幸运5官方开奖结果体彩网:credit cards.

𒀰 Allowing customers to pay via credit card can make managing cash flow less stressful, eliminate delays in waiting for check payments, and potentially b🐻oost sales. If your business isn’t yet accepting credit card payments, changing that may be easier than you think.

How to Accept Credit Card Payments

If you’re ready to accept credit card payments for your small business, you’ll need to follow a few steps. But once you😼 get a system se෴t up, it’s relatively easy to oversee and manage. 

1. D🐼ecide How You’ll Accept Credit Card Payments

You've got options for accepting payments. You can accept payment online, in-person, using a mobile card reader, or over the phone.

The option you choose may depend on the type of business that you run. For example, if you have a brick-and-mortar retail store, you may accept credit cards in person at checkout or online if you’ve set up an 澳洲幸运5官方开奖结果体彩网:e-commerce store. Alternatively, using💙 a mobile card reader may be the best option if you run a mobile business. 

2. Choose a Payment Processing System

When a customer gives you their credit card to pay, there’s more to it than simply swiping or inserting the card. The customer’s car🐼d and account details must be reviewed and processed electronically so that your payment can be authorized. All of this happens digitally behind the scenes in seconds, but you need to hire a payment processor to make it all work. 

If you want to accept credit card payments, you can do it in one of two ways: merchant accounts or payment service providers. A merchant account is an account you open with 𝕴a bank to accept credit card payments. Payment service providers are companies that allow you to accept credit card payments without setting up a merchant account. 

Of the two, a payment service provider may charge lower processing and transaction fees. So, it may work well for you if you have a newer business or relatively small credit card payment volumes. However,🥃 if you make large purchases from credit cards, a merchant account could be an easier way to manage your credit card payments. 

3. Get Your Credit Card Payment So☂ftware and Hard🍎ware in Place

Once you have a method in place for processing credit card payments, you may need to update your 澳洲幸运5官方开奖结果体彩网:point of sale 🐬software and hardware to actuallyജ 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 checkout. Some payment service providers will also supply the equipment that🌞 you need to get set up for accepting 🀅credit card payments in-store or via a mobile card reader. 

How to Accept Credit Card Payments Online

Many small businesses are now online-fi💙rst or even online-only. Whatever type of business you own, allowing your customers to pay with their credit card online provides them with mꦏore convenience and can boost sales. E-commerce shops, restaurants that accept orders online, and digital services companies couldn’t function without this capability.

Providing this service to your customers is not difficult. 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 serviceಞ provider plan.

You will need a digital storefront, and the most common way of obtaining one is to sign up for an account with an e-commerce platform provider. Credit card payments are su🍷ch an important part of contemporary e-commerce that all of the major e-commerce platform providers will allow you to take credit cards as a🔯 form of payment.

Just be aware that there is generally a cost associated with this. Online credit card tr꧂ansactions typically have higher processing fees than in-person transactions.

Things to Consider

If you're on the fence about accepting credit cards, it can help to see the advantages that the payment option brings your business while weighing the drawbacks.

Advantages of Accepting Credit Cards

Allowing your customers to pay with credit cards can yield a number of advantages for your business that could lead to greater growth. Major reasons to accept credit 𝔍cards include:🐟

• Improving cash flow, since it can speed up payment times and reduce delays
• Legitimizing your business in the eyes of customers
• Potentially boosting sales volume since your customers will have more ways to pay

If you’re still not sold on the idea of accepting cards, consider the growth of credit card payments. More and more people are choosing to pay for things with plastic rather than cash. According to the Federal Reserve Payments Study, published in 2023, there were 51.1 billion credit card transactions in the U.S. in 2021, up from 33.7 billion in 2015.

A more recent study from Forbes confirmed that trend. At the end of 2023, according to its research, 37% of purchases in the U.S. were made with either a physical or virtual credit card.

This switch to cards is being fueled by a combination of factors, including more people shopping online and all-round convenience. According to the Federal Reserve, 82% of U.S. adults had a credit card in 2022. Companies that don't accept this method of payment risk losing business.

Disadvantages of Accepting Credit Card Payments

Despite the advantages of accepting credi🧜t cards for your small business, some risks are involved in giving customers this option. The most prominent are:

Security Tips for Small Businesses

Small 💫businesses that want to accept credit cards but also want to avoid the risks outlined above should consider the 𝔉following:

• Only use approved, well-known software and equipment. There are lots of different payment processors on the market today. Make sure to check the credentials of the company that you choose to work with.
• Don’t store customer credit card data. Although you are allowed to do so, it makes you very vulnerable. It’s better to adopt a use-and-delete process.
• Train your employees to handle credit card data and spot potentially fraudulent transactions. This can save you a lot of time in the long run.
• Verify shipping and billing addresses. This can dramatically reduce the potential for fraud.
• Be extra vigilant when accepting credit card payments online. With this kind of payment, if your company accepts a bad or stolen credit or debit card, the total liability for the loss is yours.

Pay Attention to Credit Card Payment ⛎Processing Fees

Accepting credit cards through a merchant account or a payment service provider isn’t free; each charges service fees to facilitate those payments. As you prepare t♋o accept credit card payments, consid✃er how those fees factor into your operating and overhead costs. 

If the fees will take a serious bite out of profits, you might compensate by increasing prices for your products or services. Alternatively, you could add on a surcharge or convenience fee for processing credit card transactions below a certain d🥀ollar amount.

Be sure you know state and federal regulations on credit card surcharges to avoid any illegal practices. In some states, it is illegal to charge credit card fees. And where it is legal, there are limits to how much you can charge and rules about being transparent.

The Bottom Line

Nowadays, finding a small business that doesn’t accept credit cards is unusual. This is because giving customers as many options as possible when it comes to payment can drive sales and boost customer satisfaction. While there are some risks and costs associated with accepting credit card payments, these generally are more than made up for by an increase 🍎in convenience and sales.