In order to maximize sales and attract more customers, it’s time you start accepting payment via credit cards in your business. Making credit card a viable method of payment will help you win you customers because a vast majority of people today believe in going cashless. Even though credit card processing is not complicated, there are certain things that you need to consider if you are planning to accept credit card payments from customers.
These include getting an approved merchant account, using the latest technology, and keeping pace with the changes in security protocols in order to give your customers and yourself maximum convenience.
Here’s everything you should know about the online credit card processing system.
Know the parties involved:
Before you start accepting credit card payments from your customers, you need to know who all are involved in these transactions and how your money will move. The main parties involved are – the issuing bank who issues the credit card to your customer, the merchant bank who holds your funds received via sales, the card associations who set the interchange rates and act as governing bodies, and the credit card processor who acts as a middleman between card associations and financial institutions. Compile the requirements of all these parties before signing up to accept credit card payments.
Select the right credit card processor:
Based on your type of business, and how and where you conduct it, you can select the right type of credit card processor. If you own a business that is mobile or you attend a large number of trade fairs through the year then you can get a mobile credit card processor. However, if you own a restaurant or a retail outlet, you can opt for point-of-sale transaction credit card processor.
In this manner, you can select from various credit card processors like API, online shopping cart, online invoicing and EMV smart terminal as per your business dealings.
Ensure that you earn the required revenue:
If you own a small business, the biggest challenge you face is to meet vendor requirements. This is because if revenue generated by you is not enough, there are high chances of rejection of your application from credit card processing companies. Revenue requirements vary from one financial institution to another; so, you must select the one that has a low required revenue limit.
Figure out credit card processing fees:
Before you select a credit card processing company, you must find out the cost you have to pay if you start accepting credit card payments. Based on the number of payments you receive and the amount you receive per transaction, you will have to pay a charge to the processing company.
You will need to pay a payment gateway fee to process your customers’ credit card information, a statement fee for mailing or printing of statements, an average discount rates fee on your sale amount that your credit card processor keeps, and the transaction fees that you have to pay on each transaction. Totaling these charges will give you a clear cut costing indication, basis which you can choose an online credit card processing company of your choice.
Make sure that data security is in place:
You are responsible to ensure that the online credit card processing system you have in place follows stringent security standards and abides by all the compliance measures. This is because if you accept payment from your customers through credit cards, you need to be sure that all of their private information is kept confidential and secured.
Various standards through which you can ensure security are the Payment Card Industry (PCI), Data Security Standard, secure sockets layers protocol, end-to-end encryption and the three-digit card verification value.
Online credit card processing system:
Now that you know about the online credit card processing system, compare and select a trusted online credit card for your business too. Choose the Bajaj Finserv RBL Bank SuperCard. This card is loaded with benefits and comes with a good credit limit, and offers discounts and a lot of reward points on every transaction you make.
Moreover, this card also offers no-interest cash withdrawal and a no-interest loan for a specific period, EMI conversion of bills, fuel surcharge waivers, discounts on movie tickets and privilege discounts on the EMI Network. Check your pre-approved credit card offer to speed up and simplify your application process even further.