If you are a small business owner but want to take your business to the next higher level creating a retail component, it is very important that you find an affordable and reliable credit card processing company. On the other hand, if you are a retailer but finding it difficult to manage your sales then it is time to stop and think what is stopping you.
There are several platforms these days as well as third-party sites that will promote the sales of goods online by the small merchants. However, there will be a cost factor involved in availing these services and this cast can add up quickly to a hefty amount.
If you want to break away from that fee structures and ready for autonomy from the limitations in site design, you may even consider setting up your own retail site and that includes payment processing.
Find a provider
However, if you do not want to indulge in such hassles and focus more on your business, you should find a provider that can handle your credit card processing. There are several such companies out there but make sure that you visit only reputed and reliable sites such as Nadapayments.com or others to know more about:
- The services provided
- Pricing model
- Payment terms and
- Other conditions.
If a small business has a website that is already fortified with a store and a shopping cart system, it is very simple to set up an online payment processing or to find a credit card processing service.
In addition to that, most of these credit card processing services work almost in a similar fashion and are easy to use. Their services will include:
- Routing the customers visiting your site from the shopping cart on the site to and through a secure payment system on their own site and
- Allowing you to embed their payment button directing on your site.
All these processes involve secure and safe encryption which may be a bit difficult for you to understand and even use if you are not tech savvy. In such a situation it is best that you contract a web developer. They will help you a lot in setting up such a process.
However, if that is not possible you can also avail the exceptional customer service that most of the credit card processing companies and gateways offer to avail setup assistance.
Setting up a merchant account
On the other hand, if you do not have any online store or shopping cart with credit card processing, you will then need to have a merchant account.
- This is a specific arrangement with a bank to accept and process credit cards.
- There is a dedicated payment gateway which is actually the infrastructure that will enable you to accept credit card systems.
If you have to set up a merchant account, there are actually two specific types you can choose from. These are:
- Dedicated account – This is the type of an arrangement with the bank wherein the bank will enter into a contract with you to provide you with your own merchant account. This can be used only by you alone. However, you may have to meet the eligibility criteria of the bank. In order to determine your eligibility, the bank may conduct a thorough verification and a comprehensive review of your business, the accounts, and other factors. If you are a small business owner, the bank will ask you to provide al personal as well as business information. The bank may also interview you asking specific questions before opening a dedicated merchant account.
- Third-party processors: Ideally, it will take a long time to setup a dedicated merchant account due to the official process involved in it to assess your business. If you have time constraints then opting for a third-party processing service may be an attractive and beneficial option. It is especially beneficial for those businesses that have very low volumes of transactions. This process is comparatively fast and very easy to set up. These types of merchant accounts are also called aggregated accounts. This means that your money will be combined with that of other companies.
However, at this point, you may have noticed that creating a dedicated merchant account is much better than working with the third-party processors. This is because:
- There is little or no business analysis done by the third-party processors before your approval for service with them and
- They can put your account on hold or even terminate your service without prior notice putting your business in jeopardy.
However, there are several review sites that have found that there are several small businesses that use third-party vendors for credit card payment processing. This is because there are several benefits of availing their service that includes:
- They have a more predictable flat rate pricing
- They offer their services in a month to month arrangement
- They charge very little or no fees, monthly or annually and
- There is no monthly minimum requirement to qualify.
However, experts say that you do not choose any online payment system without shopping around. Make sure that you research extensively about the payment sites. This will help you to find out whether or not their payment structure matches your needs.
- Basically, you will want to work with a payment processing service that is reliable and reputable and offer a payment process that is consistent. Customers will flee if it is not consistent.
- Moreover, the company should be versatile so that it can accept payments made in all forms, from anywhere and anytime.
- Lastly, the payment processes must be safe and secure, encrypted and protected.
When you have found one such company make sure that you are prepared to pay the gateway fees, percentage pees charged for each transaction and statement fees. However, do not shy away from negotiating on it.
Remember, that most of the credit card payment processing services use a parent gateway which is why you should be cautious when you choose such a service.
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