The Key To Increasing Your Customer Base: Accept Credit Cards

If you're an online business looking for a way to increase your customer base, the best solution for you is accepting credit cards. Firstly, credit cards help further establish trust and security between the customer and the merchant. A cardholder feels more secure carrying around their plastic when they know that it's never going to be compromised by any security breaches through processing. Credit card users can also use them as a form of payment in stores as well as online which can speed up checkout times, save businesses money on card processing fees, and ultimately improve chances of converting a new or returning customer into becoming a repeat buyer or regular visitor.

The terms "credit card" and "credit card processing" have changed over time. Today, when you hear someone say credit card, they could be referring to a multitude of things. These include credit cards with their brand printed on them, pre-paid debit cards (these are very popular in the US), gift cards with money loaded onto them, merchant services/merchant accounts/credit card terminals used in brick & mortar stores and online merchants. Cardholders can use any of these types of cards to pay for purchases whether they're inside or outside of a business establishment.

Historically speaking, credit cards got their start in the 1950s when Diners Club issued the first one in New York City. Using these cards as payment for meals at restaurants helped those customers who were often asked by merchants to provide their name and address. Diners Club also began negotiations with major department stores like Saks, Macy's, Bloomingdale's and the Waldorf Astoria to issue similar cards. The first American Express card was issued in 1958 while Visa and MasterCard debuted in 1966. Since then, these credit card providers have been able to establish partnerships with literally every type of business including grocery stores, gas stations, car rental agencies, hotels, airlines and even oil companies.

Credit card processing can be divided into two different categories: processing that occurs inside a business establishment and online credit card processing which is also known as eCommerce. Merchants who are looking to accept credit cards in their stores can do so with the use of a terminal which captures the customer's name, signature, and credit card information during the transaction. This information is sent to the merchant's bank for authorization which ensures the funds are available for use and then charged to the customer. Online merchants can accept Visa, MasterCard and other major credit cards through a similar method. These services are usually provided through a merchant account which is typically managed by the merchant's bank. A business with this method of payment setup will use an online portal that includes credit card processing software and a card reader which is attached to their computer, tablet or smartphone. The card number and expiry date of the customer's card are entered into the portal and they are asked to complete the transaction on their end. This information is then sent back to the merchant's bank for processing.

Computer terminals can be used at online merchants as well as physical stores that accept credit cards in order to accept debit cards and cash payments as well. These days cash payments tend to go through a check-out system which can be more complicated than simply swiping a customer's credit card. Online merchants must also worry about extra charges associated with this method of payment processing. The costs of using this type of processing may begin at a minimum of $10 per transaction online and an additional $1 after the first transaction. There are other fees that banks may charge from anywhere between 5%-15% depending on their policies as well as any extra charges related to fraud and chargebacks which are when the cardholder disputes the amount charged on their statement or requests a refund from their bank.

The benefits of accepting credit cards online far outweigh the disadvantages although there are some negative aspects to consider as well. The most important of these are the cost of accepting credit cards, the need to have a merchant account with a bank in order to process credit cards and the burden of time and paperwork required to set up this system. These are the major things that online merchants need to consider if they're planning on adding credit card processing to their business.

There are also other options for online merchants who want to accept credit cards but don't want the added hassle of a bank's merchant account. One solution, which is often used by independent sellers on eCommerce websites like eBay, is allowing payments through PayPal which functions more or less as an escrow company since it stores funds until they have been received by the customer's bank for processing. Another solution is adding a payment gateway to your website which will accept credit cards directly from customers. This can be done by providing a form where customers can enter their card details themselves or using an existing merchant account that accepts credit cards. These gateways are generally linked with an online shopping cart or website where a customer can store items in their cart until they're ready to check out. They then select a credit card, enter the amount they'd like to pay for the item and complete the transaction on your site. This can mean more work for you as IT admin/admin since you'll need to ensure your website can handle high traffic volumes and be set up with proper security measures such as HTTPS encryption. However, these solutions will save time and also help to avoid fraud which is a major concern for online merchants.

In conclusion, credit card processing is likely more complicated for online merchants but the methods that are available for online merchants to accept credit cards are starting to become more streamlined. Online buyers who shop on eCommerce sites like eBay or Amazon will easily be able to use their credit cards without any problems. Credit card processing is a big part of online payment options these days and thus if you're an ecommerce merchant it's important for you to have a merchant account setup so you can receive your money from customers after they make their purchase.

Author is a freelance writer and has been writing extensively on credit card processing, merchant services and payment gateway solutions for over 5 years. To know more about merchant services, please check Merchant Account Reviews by www.merchantaccountreviews.org . You can also reach him at +1-844-610-2226 or find him on LinkedIn.

This is a guest post submitted by the author of this article. All opinions are the author's own and not of ezinearticles.com. If you need your own medical opinion, please seek advice from a health professional.

Conclusion

This article gives you an idea of the potential future of this new payment method which has given many people a reason to be excited about what is sure to be an interesting year for both consumers and merchants alike. We predict that the Apple Pay will have a significant impact on finance and business in the coming time, and these predictions are very likely to come true. Apple Pay is currently in beta mode but it will soon become an available payment method that more people can use with their iPhones or Apple Watches.

The Key To Increasing Your Customer Base: Accept Credit Cards

The Key To Increasing Your Customer Base: Accept Credit Cards

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