It was only just a few decades ago that you’d find far more dollar bills than plastic cards in consumers’ wallets than you do today. Like, who actually has any cash on them anymore, right? Yes, the digital age has fast approached and we will become even more cybernated as a society in the days to come. This is why, no matter what type of business you’re running, if you aren’t accepting credit card payments yet, you better pull up your socks and jump on the bandwagon or you’re going to be left behind!
This article is for merchants and small business owners who are looking to increase sales through a more streamlined consumer payment experience.
Here is what we are going to go over regarding credit card processing for small business:
- Why people love using credit cards
- What happens during a credit card purchase
- The pros and cons of accepting credit card payments
- Various ways to accept credit card payments
- How PayHawk can get you set up to accept credit cards today
So, if you are longing to know how to accept credit card payments and who you can trust to be the best payment processor for small business, then let’s get started!
Why people love using credit cards
Credit cards offer a lot of perks that appeal to people. Here are a few:
Credit cards generally have better rewards programs than debit cards.
This means that people can earn points, cash back, and other benefits just by using their credit card for everyday purchases. So not only are you getting a convenient and flexible form of payment, but you can also earn rewards while you spend.
Credit card usage is a great way to build your credit score.
If you use your card responsibly and make your payments on time, you can improve your credit history, which can lead to lower interest rates on loans and other lines of credit in the future.
Credit cards offer a level of financial protection that debit cards do not.
The cardholder is not responsible for any unauthorized charges if a credit card is lost or stolen. This is not the case with debit cards, which can leave people vulnerable to fraud and identity theft.
Credit cards are incredibly convenient.
Instead of carrying around cash or checks, you can just swipe your card and be on your way. Also, unlike cash, credit cards can be used for online purchases and over-the-phone payments.
For all of these reasons and more, it’s no wonder that so many people love using credit cards. You’ll probably want to get started with small business credit card processing immediately!
What happens during a credit card purchase?
When your customer hands over their card and says “charge it,” they are actually initiating a complex series of events that ultimately result in the funds being transferred from their bank account to you, the merchant’s. Here’s a look at the behind-the-scenes action that takes place every time your customer whips out their plastic:
First, the credit card company verifies that their account is active and that they have sufficient funds to cover the transaction. Then, the card issuer approves the transaction and assigns an authorization code. Next, the credit card processor forwards your customer’s transaction information to your bank. Your bank then deposits the funds into your account. Finally, the credit card company bills the cardholder for the purchased amount.
So, there you have it – the next time you make a credit card purchase, you can take comfort in knowing that there is a whole team of financial professionals working behind the scenes to make sure that everything goes smoothly – and that you get paid!
Pros and cons of accepting credit card payments
We’ve already discussed why your customers love using credit cards, but what benefit is it to you to have the option for them to use them? And are there any potential drawbacks? Here are the pros and cons of accepting credit cards:
- Widens customer base – As any business owner knows, a customer base is essential to success. You want to make it as easy as possible for potential customers to give you their business, and part of that is being able to accept the payment method they prefer. For many people, that means credit cards. In fact, a recent study found that nearly 60% of consumers say they would be more likely to do business with a company if they could pay by credit card. So if you’re not already accepting credit cards, it’s time to start. Not only will it widen your customer base, but it will also make your life a lot easier. Contact PayHawk asap!
- Increases sales – It’s true! Credit cards are a popular payment method, and customers are more likely to make impulse purchases when they can use a credit card. In addition, credit cards provide businesses with a quick and easy way to get paid. There’s no need to wait for a check to clear or for customers to visit an ATM; businesses can simply process the transaction and receive the funds immediately. As a result, accepting credit cards can be a great way to boost sales and improve cash flow. Start reaping the benefits today!
- Eliminates the risk of bad checks – When you accept credit cards, you no longer have to worry about customers writing bad checks or bouncing payments. In addition, credit card transactions are typically processed much faster than check transactions, so you can get your money sooner. So go ahead and take credit cards – it’s one less thing to worry about!
- None – No, really, because what’s to lose? Except for maybe having to spend some time learning a new-to-you technology. But when you choose PayHawk, rated the best payment processor for small business, we dont leave you hanging. You have support the whole way through – and you will be surprised how easy and fast the small business credit card processing set up is!
You’ll also start having to pay transaction fees – but they’re on purchases you maybe wouldn’t even have seen come in if you weren’t accepting credit cards. You may be able to find the cheapest credit card processing out there but you’ll still have to pay to play! You can take comfort in knowing that it’s extremely affordable. A few cents per purchase typically. Contact us to go over our pricing and fees.
At the end of the day, there are far more pros than cons when it comes to deciding whether or not you should start accepting credit cards at your place of business. Let’s take a look at some of the various avenues credit card purchases might come through once you are all set up.
Various ways to accept credit cards
There’s no need to be stuck in the stone age when it comes to accepting credit cards. With today’s technology, there are plenty of options for businesses of all sizes to take credit card payments.
In-Store – Customers want the convenience of using their credit cards as a payment method and businesses want to make it easy for their customers to spend money with them. One way to accept credit cards is by using a card reader at the point of sale system (POS). This system allows customers to use their credit cards to make purchases in your store quickly and easily.(PS: PayHawk is offering FREE point of sales systems for a limited time!)
Online – When you’re ready to start selling online, you need to choose a payment processing solution that works for you and your customers. One option is to use an e-commerce platform that includes credit card processing for small businesses. This can be a quick and easy way to get started, and it can give you the flexibility to accept payments from all major credit cards. When you process credit card payments online with PayHawk you get hundreds of integration points to connect to your unique website solution.
Mobile – There are a number of different apps available that can be customized to fit the needs of any business. Best of all, there’s no need to worry about PCI compliance or other complicated issues – the app should take care of everything for you. So if you’re looking for a simple and convenient way to accept credit cards, a mobile app is a great solution.
How to accept credit card payments
First thing’s first – you need a merchant account. Merchant accounts are essential for small businesses that want to offer their customers the opportunity of paying with credit and debit cards. In order to get approved, your business must first pass an approval process–which may entail providing personal information such as social security number or a full color scan of your driver’s license (or other identifying marks). Once you’ve been granted this privilege it will enable you to set up processing capabilities with PayHawk.
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What is a merchant account?
A merchant account is a type of bank account that allows businesses to accept credit and debit card payments. In order to set up a merchant account, businesses must first apply to a bank or payment processor. Once approved, businesses will be given a unique account number that can be used to process payments. Merchant accounts typically come with a number of fees, including transaction fees, monthly statement fees, and annual membership fees. However, these fees are generally outweighed by the benefits of being able to accept credit and debit card payments. Merchant accounts can also offer businesses other benefits, such as the ability to process online payments and access to business loans. Overall, a merchant account is a valuable tool for any business that wants to accept credit and debit card payments.
Partner With PayHawk for Your Merchant Account Services
It’s true you could process payments without a merchant services provider – but you’ll be missing out on many of the amazing benefits that one can offer. Contact PayHawk today and discover how our partnership can help you in more ways than one.
Speak with one of our PayHawk team members
When you need the best payment processor for small business, choose PayHawk! The transition from accepting only cash payments and getting you adjusted to a credit card payment service is really quite easy. In fact, once you have a merchant account you will likely be auto-approved for our payment processor and accepting credit card payments within just 24 hours. Start by giving us a call at (844) 729-4295. We will go over everything you’ll need to know to get on board with us!
Thanks for reading! Be sure to check out our other blog posts for more information on the world of merchant services and payment processing. We’ll talk to you soon!