7/06/2019

Accepting Credit Cards – 3 Methods for Your Business


Today, modern businesses use a number of methods to accept credit card payments. Payments are processed using aerials, microchips, and radio frequency identifications. Microchips are everywhere. Online card payment processing is the future. Transportable POS systems, mobile wallets, and biometric security systems overtake the market.

As early as next year, payment processing technology will become very widespread. Companies introduced contactless payment systems with the biometric authentication to Asian markets almost three years ago.

Without further ado, here are 3 methods to accept credit card payments.

1. POS Systems

Your POS system is the main hub of your business. POS systems track inventory, manage transactions, and provide business analytics. Some POS systems come with payment processing to accept credit card payments.

If your business involves in-person sales, you will need a POS system to help you with customer interactions. You need a digital or ecommerce POS platform that will let shoppers purchase from your site if you’re selling online. In either case, you can choose between a POS that will require third-party payment processing or an all-in-one solution that has built-in payment processing.

If you are a small business that wants to keep things simple, we recommend choosing an all-in-one solution that has payment processing, POS, and merchant services built in. On the other hand, larger businesses would do better to choose a separate merchant account.

Most small and medium businesses do best with an all-in-one system. Below is a brief overview of the pros and cons of this kind of system.
Pros
       Flat rates  
       Easier to create and accept gift cards  
        CRM functions 
        All-inclusive customer support 
Cons
        Less flexibility 
       More expensive   

All-in-one POS system provides offer hardware that makes processing credit cards a seamless process. What is more, one central account manages every card you charge. Most all-in-one systems use their own POS hardware and branded readers so that you tend to have fewer technical or connectivity issues. They also either include an online store or work with many online shopping carts.

2. Credit Card Processors

Another option would be to sign up for a credit card processor. For example, the processor Payment Depot offers membership-based pricing, which is their most distinctive feature. Thanks to this relatively new pricing model, Payment Depot’s reputation for top customer support and open, honest sales practices puts it ahead of many of its competitors.

This company offers a flat rate, combining all monthly fees into a single monthly fee ranging from $50.00 to $200.00 per month. The exact cost depends on which plan you choose. You pay lower processing rates because there is no percent markup. The fee per transaction varies between $0.15 and $0.05.

Pros of Credit Card Processors
✓ Provides discounted rates for restaurants
✓ Low-cost ACH (eCheck) processing available
✓ Transparent interchange-plus pass-through pricing

Another option is Square, which features a free reader, a simple pricing structure, and an app-based payment system. Small businesses choose this processing service quite often. Square’s pay-as-you-go system enables businesses that ordinarily wouldn’t pay for a merchant account to accept credit cards.
✓ 2.75% for all card-present transactions
✓ Free magnetic stripe credit card reader
✓ $0 monthly fee
✓ Free POS app

Proprietary software suite includes:
• Point-of-Sale (POS) software
• Inventory management
• Mobile app
• API for custom solutions
• Virtual terminal
• Invoicing/billing

This provider keeps expenses low by compounding accounts instead of issuing each user a unique Merchant ID number. This is why this isn’t a real full-service merchant account. This is not without its benefits, however. If fraud is suspected, there’s a much a greater chance that the provider will suspend your account or terminate it without notice. This is not a big problem for a retail business that mostly deals in cash and only takes credit cards now and then. However, it can be disastrous for an e-commerce business where cash isn’t an option.

3. Mobile Card Reader

Your third option to accept credit card payments is a mobile card reader. This section will go into two popular providers: PayPal Here and Shopify. 
The PayPal Here mobile card reader and mPOS app are a great option if your business has both a large online and brick and mortar presence. There are three pricing structures, which all come with Bluetooth compatibility, meaning you can accept payments from anywhere.

Businesses can accept checks through the mobile Android, iPhone, or Windows app with PayPal Here. And of course clients, vendors, and anyone else can use their own PayPal accounts to send and receive funds. Unfortunately, PayPal Here doesn’t have readily accessible next-day funding, but there is an alternative you can choose. If you sign up for the PayPal Business Debit MasterCard, you can get your payments as quickly as one business day.

Shopify

This is the best reader for modern pop-up shops, but not only! These shops have become a very trendy way to run a business. They enable online small business owners to try selling in person, which is a new revenue stream. Setting up a booth or kiosk could boost your brand and your profits if you’re one of the myriads of online retailers selling clothes, art, or jewelry. This is where Shopify comes in. The provider’s platform features an in-person sales solution as well as a place to sell goods online. 

Shopify’s robust mobile app, online store, and mobile card readers will let you sell products and process payments irrespective of your customers’ location. Shopify’s service starts at under $30 per month,  which includes retail reports, up to two users, shipping label support, and a free swipe card reader.

Admittedly, Shopify is slightly more expensive compared to other brands, but it’s a good investment for occasional in-person sales. It’s better than most. It’s possible to lower fees by buying more advanced plans.

Conclusion


It’s truly a huge industry and it’s very hard to choose the guaranteed best option, but our suggestions are based on providers who’re great at accepting credit card payments and offer excellent products, services, and marketing.

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