Credit card processing works by transferring money from the customer’s account to the business’s account. The customer’s bank will authorize the transaction and then transfer the funds. Credit card processing also allows businesses to track sales and inventory, as well as manage their finances.
What are the benefits of credit card processing?
Credit card processing has many benefits that can help a business grow and succeed. For example, by providing customers with the convenience of paying with credit cards, businesses increase their sales volume. In addition, they receive their payments quickly after a sale. Credit card processing also helps businesses track their inventory and manage their finances since transactions are processed electronically through a credit card machine.
What are some types of credit card processing services?
There are several different types of credit card processing services, and each type varies in price and features. Here is a list of the more common types:
- Traditional merchant account: This includes credit card machines, as well as equipment and software applications that can be used for credit and debit card processing. Many traditional merchant account services also include the option to electronically transfer funds, as well as provide special rates and discounts.
- High risk merchant accounts: This type of service is ideal if your business typically processes transactions through cross-border or international credit cards. For example, merchants accepting credit cards issued in foreign countries through an online business will often benefit from high risk merchant accounts.
- Mobile credit card processing: These services are ideal for businesses that typically conduct transactions on the go, such as food truck vendors and taxi drivers. Instead of using traditional forms of payment, they can process credit cards through a mobile device or your cell phone. This type of service also includes features such as 24-7 support and online reporting.
- Virtual terminal/payment gateway: These services are ideal for businesses that have a traditional merchant account but need the ability to process credit cards over the internet, either through an existing website or a new one they are creating. A virtual terminal allows you to process transactions in a secure environment, and a payment gateway helps to protect your customers’ credit card information.
What are the fees associated with credit card processing?
The fees associated with credit card processing vary depending on the type of service you select. However, most services charge a percentage of the sale amount, as well as a per-transaction fee, which is typically flat fee with the option to have a minimum. Some services also charge monthly fees or apply other additional charges based on your business needs.
Who are some of the biggest credit card processing companies?
Some of the most popular credit card processing companies include:
- Square: Established in 2009, Square allows you to accept credit and debit card transactions on the go through mobile devices and tablet applications. You can also manage your business’s finances by accessing your account via a computer.
- Authorize.Net: Authorize.Net is an internet payment gateway, which means it provides businesses with electronic payment services such as credit cards, debit cards, and electronic checks. It also offers a virtual terminal, which allows you to process payments over the internet.
- PayPal: PayPal is one of the most popular online payment processors, and it allows you to accept payments from customers through credit cards, debit cards, and bank transfers. In addition, PayPal offers features such as invoicing and subscription billing.
- Host Merchant Services: Host Merchant Services is a credit card processing company that offers traditional merchant accounts, as well as high risk merchant accounts. It also provides mobile credit card processing and online payment gateway services.
If you are looking for a credit card processing service, it is important to consider the type of business you have, the features you need, and the fees associated with each service. By doing your research, you can find the perfect credit card processing solution for your business.