How To Accept Credit Card In Your Small Business
The process of accepting credit cards in a small business can seem intimidating. But worry not, dear entrepreneur! You don’t need to go to college for this one. Our post will walk you through the ins and outs of this relatively straightforward process!
In order to accept credit cards, you need a merchant account with a bank or a payment processor like QuickBooks Payeezy or PayPal Payments Pro. If you have never done business with these entities before, then your bank is likely the best option for setting up your account. We have detailed their differences below:
Your bank: Your primary interaction will be with your bank on an ongoing basis. They will handle your deposits and send you monthly statements.
Payment processor: You will do most of your business directly with the processor (PayPal, QuickBooks Payeezy). They will provide you with a merchant ID and password to use on your site. You’ll then be able to accept credit cards right on your own site. No merchant account required! Your bank or another payment processor: Also known as “hybrid merchant accounts,” these are a mix of both bank and payment processor relationships. Similar to #2 above, you’ll sort out most of your business directly with the processor (PayPal, QuickBooks Payeezy). They will provide you with a merchant ID and password to use on your site. You’ll then be able to accept credit cards right on your own site.
Why do I need either a merchant account or a payment processor? Why can’t I just use PayPal as my processor?
Here are the main reasons:
Ease of Use: When you have a merchant account, you are an approved user of their system. This means you can go to their website and easily process credit card payments through PayPal. They will help guide you through this process and answer any questions you may have along the way. They work directly with every card-issuer for the best rates and terms. This makes it easy to get approved with any card! Their information is always up-to-date, as they are directly in contact with the card-issuer.
Authorize.Net, ScanSafe and PayPal: All of these companies offer similar services and products
Easy Integration With QuickBooks: QuickBooks registers its own payment gateway through Authorize.net. We have tested this process ourselves, and we can confirm that it is both incredibly simple and incredibly easy! Additionally, Authorize.net offers a “QuickBooks Direct” option for merchants who want to use their payment gateway without creating an account with the company itself. This means that the Gateway and your QuickBooks account are created and maintained by Authorize.net. You will only be required to provide them with your QuickBooks number.
Certain transactions may be blocked or declined, but this is extremely rare for businesses like yours. ALL transactions will still appear in your bank accounts, minus the associated fees which are often a small percentage of the total amount processed by these companies.
You can specify what type of credit card you want to accept when setting up your account, and we’ve included some recommendations below. If you have specific questions about what kind of card you should accept or details on other options, then feel free to send us an email. We love hearing from our readers! Read on for more information:
How do I Choose The Right Credit Card Processor For My Business?
Today, there are many merchant account processing companies available. So which one should I choose? In most cases, you are going to be looking at the alternative payment processors which offer a “hybrid” method of accepting credit cards on your site.
But why would you want to use a hybrid processor?
This option allows you to accept credit cards WITHOUT having a merchant account with them (which is often the only way to get approved).
It also gives you complete control over which card-issuers you want to accept, and it means that your business can accept payment on any of your other channels like phone, e-mail or print. Typically, accounts based just on the internet tend to be more expensive so there's no guarantee that they will offer the best rates available. But there are some really great companies out there such as Authorize.Net (mentioned above), that work directly with all major card-issuers.
Other features to look for include:
Multiple integrations : Some merchant accounts can integrate with a variety of accounting software; QuickBooks being the most popular. QuickBooks Payeezy, Authorize.net, PayPal and many other processors have the ability to integrate with QuickBooks Online Payroll or QuickBooks POS. This makes managing your credit card transactions much easier!
: Some merchant accounts can integrate with a variety of accounting software; QuickBooks being the most popular. QuickBooks Payeezy, Authorize.net, PayPal and many other processors have the ability to integrate with QuickBooks Online Payroll or QuickBooks POS. This makes managing your credit card transactions much easier! Discounts: If you want to accept credit cards but don’t have a merchant account, you can use an online processor like Authorize.net or PayPal Payments Pro which offer significant discounts.
How will I know when my business is safe to accept credit cards?
There are several measures that you can take to make sure that your business is safe and approved for payments with a payment processor. We recommend completing this checklist before continuing so that you understand the process better:
Verify Your Business Information: You want to make sure that the company is not going to report bad sales data or other issues relating to your business on your behalf. Read their privacy policy; look up scams/reviews about the company and ask any questions you might have. You’ll want to ensure that the company is reputable before you hand them your business.
You want to make sure that the company is not going to report bad sales data or other issues relating to your business on your behalf. Read their privacy policy; look up scams/reviews about the company and ask any questions you might have. You’ll want to ensure that the company is reputable before you hand them your business. Double Check Your Credit Card Numbers: If there are numbers listed on most credit cards, it's important that they match what you have listed on your merchant account with the processor.
Conclusion:
The best part about using a merchant account for credit card processing is that you get to set your own approved rate. If you are not approved for payment by the processor, then we would advise against seeking out another alternative. In some cases, there can be serious fines for taking these kinds of risks!
It's important to note that these services are not always the same and can have different rates based on their account type. We would strongly recommend speaking with an expert first-hand before using any service mentioned here. For more details on the requirements of applicable businesses and any additional policies, please contact the company in question directly.