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Small Business Credit & Debit Card Processing

Small Business Credit & Debit Card Processing

If you have a business and you are thinking of incorporating credit and debit card payments, you may have hesitated once or twice because of anticipated challenges. Well, you can relax. While there are obvious challenges indeed, they can be easily handled. Moreover, the benefits for your business far outweigh whatever problems you may encounter in the process.

With the number of credit card users rising every year, it only makes perfect sense not to shut out most customers who would prefer using card payments. 

As a small business, you need to decide which credit card processing is appropriate for your specific needs. You want to consider their policies, fees, and how your company wants to accept payments (in-person or online).

If you want to find an effective way of accepting credit and debit card payments, let's offer some guidance. 

For small businesses, it is best to embrace card processing services from companies that allow great flexibility and structures that make credit card payments possible. Also, it should provide a merchant account to make it easier for the business to access the funds.


What is card processing for small businesses?

Card processing makes payment easier for customers of your business. Credit card or debit card processing involves steps that allow for successful completion of the payment process made with cards. It's a process that makes payment easier for the customer and the business. Because of advancements in technology, card processing allows companies to receive payments from customers anywhere and through several formats. 

The credit and debit transaction data are sent to your service provider, and after they are approved, the funds are forwarded to your account within one or two business days. While card processing involves instant transaction approval, the process of getting the money into your account would take about two days.

Small businesses need card processing companies that offer affordability and excellent terms and conditions. You should choose a card processor based on the volume of your daily processing. As your business grows, you may need to change your card processor as the features a small business needs may differ from that of a big one. 


Card processing procedure

Card processing is not a simple thing. It involves several steps before the funds hit your merchant account. Once the customer parts with the card to make a payment and the PIN is entered, you have sent an authorization request to the financial institution processing your credit or debit card payments. That financial institution contacts the bank that issued the card, and if the account is funded, the transaction is approved. This goes on with many customers until you close for the day. 

After closing, your POS system requests the processing company to receive all the funds from the different cards. The company then deducts the charges and funds the business with the remainder. It thus makes it easy for customers who prefer to purchase goods without going about with cash.

The billing from the card processing companies may be paid daily or monthly.


What does a small business need from card processing companies?

A small business wants a credit and debit card processing company that allows customers to pay with their card quickly and accept mobile payments. Also, you want to be able to process online payments and accept contactless payments like Google Pay. 

Small businesses also want card processing companies with business-friendly rates, excellent customer service, fair contract terms, and honest sales practices.

For small businesses, it is better to go for card processing companies that allow for monthly payments rather than long-term contracts.


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