Credit Card Processing Overview
In today’s business world, it is becoming increasingly more important for merchants to be able to handle various types of payment mediums-whether they be cash, credit, debit, or even online payment system transactions. However, it has been estimated that nearly 80 percent of all businesses sales dealings are completed with credit or debit cards. If you don’t accept credit cards now, you should look at how it is affecting your business. It has been shown that people are more likely to use credit cards for spontaneous or large purchases and on average, those using credit or debit cards will spend up to 25% more in a single transaction. That money could be yours. It is also very convenient to now pay via a card machine.
Because merchant account providers understands that the inability to accept card transactions will inhibit your business sales, merchants providers have created several different types of plans that will fit your merchant needs with low rates, minimal fees and top agents who are open and honest and who will customise your plan effectively to help you get the most for your business dollar. Whether you have a small company that processes just a few credit card transactions a month or a large volume business, the need for credit card processing is a growing must.
Selecting the right credit card processing company for your merchant account services is vital in assuring a smooth and easy experience, both for your business and for your customers. merchants providers recognise that your needs may be unique and are here to help you understand your options, so that you can make the decision that will best fit your needs and wants; a top quality provider with low cost transaction fees and the versatility to provide service at all levels, whether through machines at a small brick-and-mortar business or virtual transactions that take place over the Internet. By filling out the short form at the top of this page, you will receive instant online quotes for the nominal cost for our merchant services.
Things to Know – Definitions
Here are some basic definitions that will help you to understand the terminology associated with online payment processing, merchant services, and accounts…
- Credit Card Processor. A credit card processor is the company that facilitates the ability to accept credit cards both through physical machines or systems set up to accept electronic wireless transactions online. They manage the overall process of authorising or declining credit card sales and oversee the transition of the money between financial institutions. They charge a small fee for their services, but facilitate revenue growth in businesses with the merchant services they provide.
- Payment Gateway. Payment gateways are systems or portals used to encrypt sensitive information during a transaction and authorise payments securely over a network server connection through the Internet. These gateways can take various shapes depending on the business needs of those they service. A gateway at a traditional brick and mortar store will look very similar to a Point-of-Sale (POS) system where the customer will swipe his or her card through a base card reader terminal to enable payment processing, where an online merchant will simply have a secured box where the sensitive information can be entered on a home or business computer.
- Ecommerce. Ecommerce is simply the ability to conduct business transactions over the Internet between companies and their consumers, which is often referred to as B2C or Business to Consumer or between businesses (companies and vendors) B2B. E-Commerce, however, is not limited to credit card processing, but also encompasses all business that can be conducted electronically (i.e. generating leads for marketing, trading stocks via the Internet, sharing information over secured private networks within a company, or just about any other transactions that take place electronically).
There are four basic business account types with different features available to merchants of all sizes. They are Internet Merchant Accounts, Mail-Order Merchant Accounts, Retail Merchant Accounts, and Home Business Accounts. Credit card processing can be done in many different ways and the costs can vary significantly. Which type is right for you?
Merchant accounts are set up through a local bank, credit union or other financial backers to allow a business to make credit or debit card transactions. They are more often created through specified merchant services account processors that customize plans and payment processing methods to the needs of the businesses they service. There are three kinds of merchant accounts—Internet merchant accounts, mail-order merchant accounts and retail merchant accounts.
1. Internet Merchant Accounts. Online credit card processing is a necessity for Internet based businesses. Merchant Services provide you with payment solutions that will not only provide you with the ease and convenience of using the web to conduct business, but will also provide you with a high level of security. Our Internet payment gateway, is an all-in-one system that delivers virtual real-time payment authorisations (approved or declined almost immediately) and manually processed transactions securely through an online terminal and eliminates the hassle of extra processing software or a stand-alone POS type terminal.
2. Mail Order Merchant Accounts. Mail order accounts are very similar to Internet merchant accounts with the main difference being the equipment that is used for credit card processing. While Internet merchant accounts use virtual terminals where the consumer inputs all payment information, a mail order merchant account typically has a third party, a phone representative, who enters payment information into a credit card terminal. Mail order accounts are generally set up for purchases made from television infomercials or ads that are run in newspapers or magazines. Click here for more information on mail order credit card processing…
3. Retail Merchant Accounts. This type of merchant account is generally set up at a brick and mortar store where they accept credit cards, there is a physical card reader present, and it is expected that it will be manually swiped for at least 80% of all credit or debit transactions. The fees for a retail account are often lower than other accounts because it is considered to have the lowest risk associated with credit card processing with less likelihood of fraud. There are various types of POS terminals available to choose from. Click here for more information on retail credit card processing
4. Small Business Accounts. Small businesses can use a combination of all three types of merchant accounts or just one, depending on the needs and type of business being transacted. If people come to your home to purchase goods or services, a retail merchant account with the ability to process credit or debit cards through a physical card reader may be the best option for you. If you sell products or services mainly over the Internet, you will want to consider an online payment gateway to fulfill your needs. There are many different types of small businesses, some will have a single location and others will be mobile and constantly on the move. No matter your unique needs or the type of account you need we can help you find your small business credit card processing solution.
Rates and Fees for Card Payment Processing
Accepting credit or debit cards is no longer a luxury, but a necessity for businesses of all types and sizes, whether you need a wireless type connection or a physical POS terminal. merchants providersstrive to have the most competitive rates and cheap packages available throughout the industry and a staff dedicated to meeting and exceeding your needs and expectations. Rates will depend on the merchant services you require and the type of transactions that your business handles. The fee for a card reader or swiped terminal transaction starts at just 1.08% and for a virtual terminal rates start at 1.69%.
Which credit card processing is cheapest for small business?
Looking to accept card payments then getting setup with a credit card processing company will solve all these issues. Accepting card payments is one of the most important business decisions you can make if you want to increase your business profits. If you are unsure of the benefits it may help you to understand how card processing works.
As a business you are the merchant who accepts payments in exchange for the product or service you are offering. The cardholder is the customer who then uses the credit or debit card to make the payments to pay for the good or service. For this to work you as the business will need a merchant account in order to enable credit card processing. The merchant bank will then allow you to accept and deposit payments.
Payment processors providers such as Worldpay, Paypal, Sagepay and Elavon make all this possible. Depending on your business and your needs we can match you with the best card processing provider at cheapest rates. So if you currently are not accepting card machine payments or are looking for a new payment processing provider let us help you. Get started by filling your details in our quote form and connect to our team to find the perfect card processing provider for your business.