Credit Card Processing: A Helpful Guide For Brand New Business Owners

Starting a new business can be overwhelming and stressful, especially so if it is your first foray into self-employment. One thing that doesn't have to be difficult, however, is credit card processing.

While it might seem like this would be a complicated task, credit card processing is easier today than ever before for businesses of all sizes. Through a merchant services account it is simple for you to process your customer's credit cards in person and online. In today's world it is almost mandatory that your business accept credit cards in order for your company to flourish.

The first step is getting all of your important information together. There are a lot of things that you are going to need in order to set up your Merchant Account. Here is a quick checklist to get you started.

• A checking account – If you are the sole proprietor you can normally just use your personal account. Otherwise you may need to set up a business checking account.
• A copy of a voided check – This is normally only needed if you are using your own account.
• Business license, reseller license, or articles of incorporation – This is not always needed but some merchant account services require them. They just need to know that you are a legitimate business. So whatever you have that shows you are official, have it ready.
• Pictures of your offices – Again, they just want to make sure you are an official business. The more professional you look the cheaper your processing costs will end up being.
• A website – Obviously if you are going to want real-time online processing you need a website. If you are just a "bricks and mortar" business then you don't need a website.
• Information on your returns policy – Even if you don't offer refunds, your provider will want to know what your policy is.
• References - Just like applying for a job, if you have references from people in your field it will help you get good rates and will speed up the process.
• Business tax returns – As stated above, any info that shows you are legitimate will be helpful. Low-risk accounts might not require it, but if you have it on hand it could be useful.

Once you have all of this information together, it is time to start thinking about exactly what type of processing solutions your business requires. Here is a quick rundown of the different ways merchant accounts can process debit and credit cards.

Retail Swipe Terminal

This is the most common way of processing credit cards at any grocery store, big box store, or corner deli. It is the little terminal that you or the cashier swipes your card through and then either prints out a receipt or lets you type in your debit card number. If you have a storefront that you sell most of your merchandise through, you are definitely going to need this.

The great thing about the retail swipe terminal is that they have pretty low processing fees. The merchant account service knows that there is a lower risk of fraud when people pay in person, so the fees are generally marginal. Once the service has processed the card, the money will be transferred to your account in a few business days.

Real-Time Processing

Real-Time Processing is for companies that do a lot of business on the Internet. Everything is automated through this service. The customer puts in their credit card information, the information gets sent to the merchant account and in a few days the money is in your checking account. All of these transactions are secure and you usually don't even need to buy a secure certificate for your website.

Virtual Terminal

Sometimes, however, businesses sell merchandise on the Internet but still accept payment over the phone, through the mail, or by fax. These businesses will need to set up a virtual terminal. Luckily, most merchant account services will either include these for free with real-time processing or for a small additional fee.

A virtual terminal is simply a secure website that you can log on to and manually type in your customer's credit card information. You can access this terminal from any computer connected to the Internet, also making this a great mobile solution.

Wireless Merchant Services

Another mobile solution for businesses on the move is wireless merchant services. There are two ways that your business can process information wirelessly. One is through a touch-tone solution.

For this, all you have to do is call a number and enter the customer's credit card information by using a touch-tone phone. This is great for small merchants who don't want a lot of startup costs, but it can be time-consuming when dealing with a large number of orders.

The other option is actually buying a wireless swipe terminal. These work the same as the traditional retail swipe terminals except the cards can be processed on the go. It is also worth noting that some merchant account services offer free terminals and then hit you with a massive termination fee when you want to stop using their service. It is best to just buy the terminal outright.

As you can see, setting up a merchant services account for processing credit cards is not nearly as complex as it might originally seem. Yes, there is some paperwork to get together and you have to figure out the solutions that are right for your business. After that, however, it is as simple as watching the money roll in.

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