Succeeding in the World of Business

How Will Your Business Take Payments?

2 August 2022

Marie Henderson

When you manage any business, one of the decisions you must make is how you will accept payments. A few businesses manage solely with cash payments, but an increasing number of people no longer carry cash preferring to opt for credit or debit cards, or even mobile apps such as Google Pay or Apple Pay. In most cases, you must have a method of accepting card payments, and that means working with a credit card processing company.

What is a credit card processing company?

A credit card processing company, or as they are sometimes called a payment gateway, provides the connection between your bank account and your customer's bank account. It is this third-party payment system that will approve payments made using your customers' cards and ensure that the money will reach your bank account. Many companies offer credit card processing and there are several ways to take payments. Before committing to any company, it is best to understand the options available and the different fee structures that could apply.

How will you take payments?

If your business is primarily conducted by phone, you will need access to a virtual terminal, but if you want to take payments online, you must have a payment gateway. If your company is a restaurant or any other company that collects payments in person, you must have one or more card readers that you could either buy outright or rent as part of an ongoing contract with your payment provider. These readers might be countertop readers located next to your till, or you could opt for Bluetooth-connected portable readers allowing you to offer your customers table service.

How will you pay?

Whatever system you select, there will be costs to consider. The best credit card processing option for your company will depend not only on how you want to take payments but also on the average size of the payments you accept and how often you want to take payments. If your sales are infrequent, you might favour paying a low monthly fee, an authorization fee, and a small percentage of each transaction to the provider. If you process many payments, then paying a lower percentage, but a higher monthly fee could be a more attractive option. Other fees that you must consider include chargeback fees and fraud prevention fees if your customer uses a stolen card for their purchases. Understanding the possible charges in advance can help you make the right decisions and grow your business effectively.

If you are looking for ways for your business to take payments, consider a credit card processing service.

Share  

Search