Credit card payment processing is critical for any business these days.
For a business owner such as yourself… can your business afford to not have the power to accept credit cards?
“What is credit card payment processing?” you ask. It is exactly what it spells out. It’s a service which enables your business to accept credit card transactions.
This makes it sound so simple, doesn’t it?
While the actual process is fairly simple and requires very little of you and your employees once it is implemented, setting it up is a bit more involved than just swiping a card.
There are a lot of different aspects to the overall process you should be aware of. There are also several options available to choose from as far as payment processors are concerned.
Choosing the one right for your business takes some time and research. You need a payment processor whose fees won’t break your budget. Very important!
Comparing different pricing plans and monthly fees associated with the different payment processors is essential in finding one which works for your budget.
Some offer more than others which is most often reflected in their rates. For instance, QuickBooks Payments integrates seamlessly with QuickBooks back office software.
This particular marriage of QB Payments with your QuickBooks back office software will actually perform your reconciliation process for you as you accept payments. It automatically enters payments into QuickBooks and expedites your back office tasks.
This will free you up to focus more on the enjoyable parts of your business. Like being the face of your business and interacting with your guests instead of spending all your time performing back office tasks.
QuickBooks Payments is also available as a wireless service and works best with smartphones and tablets via a separate swiper adapter which connects to your device.
You just need to have the QB Payments software app downloaded on your device and the rest is easy.
This is just one example of several different payment processors out there for you to choose from.
There’s plenty of information available online to help you compare different payment processors and their pricing plans.
Many of them charge a contract fee or a monthly fee as well as swipe fees. The contract fees are self explanatory. You will have to sign a contract to use their services for a specific amount of time. This costs money.
Most services (like the one mentioned above) will have different payment options available. Some will allow you to pay as you go (per transaction fees) or you can pay a monthly service fee.
Most of them charge a percentage plus flat rate per transaction in addition to the contract or month-to-month fees you choose.
They charge a swipe rate and a keyed rate on top of the monthly fee. The swipe rate is the rate they charge per physical credit card swipe and the keyed rate is the rate for manually keying in the credit card information for approval.
Be aware, a lot of processors charge more per swipe for certain credit cards. For instance, if your customer uses an American Express card, you will be charged a higher swipe fee than if they used Visa or Mastercard.
The credit card companies determine these rates. So don’t get mad at your processor! It’s not their fault.
American Express simply charges more than other credit card companies to approve credit card transactions with their card.
Part of the reason they can afford to do this is because their clientele are typically wealthier people, and when they shop they use plastic almost exclusively. They usually shop at high end retailers too and spend serious amounts of money when they do.
High-end retailers can afford to pay the higher rates associated with accepting their wealthy patron’s American Express credit cards.
Another reason for the higher charges is because other credit card companies charge lower rates for debit transactions. Visa and Mastercard in particular.
There are some processors out there charge a flat fee for all cards, like SquareUp. They charge a flat 2.75% rate for all swipe transactions. The funds are deposited to your account within 1-2 business days.
They actually have lower transactions fees than a lot of payment processors. And they provide services for point of sale systems and mobile systems.
Convenience is the name of the game! The more convenient for your customers the better for your business.
Options and prices are more competitive now than ever. So, choose wisely what credit card payment processing service best fits your business needs.
Be sure to check out the various business intelligence solutions RedFynn offers in addition to our guaranteed lowest rates for credit card processing. Growing your business is the name of our game! Super friendly folks here to answer any and all of your questions: (888) 510-9871