Accept Credit Cards

The credit card is the most convenient and popular mode of payment today. Millions of consumers rely on credit cards for buying goods, paying bills and so on. If you don’t want to lose out on these customers, it is high time you start accepting credit card payments.

Whether you own a website or a garment store, accepting credit cards will improve your sales and profit margins significantly.

This is how you can start accepting credit cards for your business and get your profits rolling:

Step 1: Ensure that you have your Business License in place

If yours is a government approved company, you would already be having an operating license with you. However, if you do not, apply for one now- since such is needed to open a merchant account and accept credit card payments.

Step 2: Understand the Difference between Credit and Debit Cards

Credit cards provide customers a fixed line of credit which they can use to pay for goods and services, whereas debit cards are just a cashless method of paying directly from a person’s checking account. It is best to accept payments from both, as this provides your buyers with more payment options.

Step 3: Understand the State Laws and Regulations

Every state has its own rules and regulations to protect consumer rights and these apply to all businesses. Before you start accepting credit cards for business, get acquainted with these laws to prevent problems in the future:

• The Fair Credit Reporting Act – It is the federal law that regulates the collection and use of consumer credit information by businesses.
• The Fair and Accurate Credit Transaction Act (FACTA) – This law was passed in 2003 and is also known as the Consumer Credit Protection Act. This law deems that it is important to provide all your customers with a receipt of credit card transactions.

These and many other such laws are meant to safeguard all your transactions, so that neither you nor the consumer gets cheated.

Step 4: Set up a Merchant Account

A merchant account allows you to accept credit card payments and deposits that money into a designated ‘bank’ account where all financial transactions are verified and approved. This helps you accept payments directly from consumers, and the amount is instantly added to your bank account.

You can either contact your bank to set up a merchant account for you, or you can choose a financial institution or credit card processing company instead.

Step 5: Install Credit Card Reader/Processing Instruments

The last step is to install the credit card processing units or equipments in your store. These are machines that allow you to swipe the credit/debit cards and charge the consumer. The cost of these equipments differs on the basis of their features, ease of installation etc. Ensure that you choose a processing unit that provides maximum security.

Choosing to accept credit cards is a big, but often necessary step one has to take to run a successful business. Following the above 5 tips will make this process easier, and you will soon be on your way to earning more money.