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Credit Card Processing 101

Written by: Drew Goldbaum

Article Overview: Accepting credit cards offers an array of advantages to companies: Reduced administrative cost, improved cash flow, quicker access to funds, the image of a modern, innovative company, etc. Consumers also like using credit cards as a form of payment because it is a simpler and safer method, no hassles with cash or delayed payments as with billing. Accepting credit cards can be a big decision for some businesses. For others, accepting credit cards can be their most widely used form of payment, including cash! The following guide will assist you with moving your business into the world of electronic payments. Accepting credit cards should be an easy decision once all the facts have been clearly defined.

Credit Card Processing 101

Is Accepting Credit Cards Worth It?

Not every business needs to accept credit cards. Many companies function perfectly fine with cash or billing and other payment terms. However, in order to sell your products or services successfully, most businesses should definitely consider looking into accepting credit cards. Accepting credit cards can make it easy for your customers to buy products and pay for services. The more difficult it is for customers to conduct business because credit cards are not accepted, the greater the chance of losing that customer forever!

Although the cost of accepting credit cards should be considered; conversely, so should the cost of not accepting credit cards. Will you be losing customers? Will you be inconveniencing your customers by not accepting credit cards? Do your competitors accept credit cards? Remember, today's consumers demand conveniences. If you are inconveniencing your customers by not accepting credit cards, you might consider that an obvious sign that accepting credit cards will be a smart business decision.

Whether you decide to accept credit cards or not, be sure to consider all of the factors involved. Making an educated decision in the beginning will prevent a lot of headaches down the line.

What do I need to accept credit cards?

In order to accept credit cards you will first have to establish a merchant account. The merchant account is an account established with a payment processor for the settlement of credit card transactions. The funds derived from the merchant account will need to be deposited into a checking account belonging to any bank of your choice.

If your business operates as a corporation, a business checking account in the businesses name is required. If your business is a sole proprietorship or partnership, the only requirement is the individual or partners' name(s) must be on the check. Meaning, in this circumstance, a personal checking account can be used in place of a business checking account but only for sole proprietorship or partnerships.

The next step in accepting credit cards is to choose a payment processing solution best suited for your business type; these include Real-Time Internet processing, retail swipe terminals, and computer-based processing such as software or our Virtual Terminal. Please feel free to contact us for detailed information on each available solution to help you determine which is best for your businesses needs.

Your credit card processing options:

Real-Time credit card Processing - This is our most popular solution for Internet businesses that accept credit cards. Real-Time credit card processing allows your customer to automatically and securely pay on your site using their credit card. Real-Time processing normally works in conjunction with a secured online order form or a shopping cart. Because the payment gateway encrypts the information prior to sending it out for authorization, secure certificates are not required for Real-Time processing.

Virtual Terminal - This solution is perfect for Mail/Phone Order businesses as well as web sites that process sales using a non Real-Time processing solution. Our Virtual Terminal is a secure solution that allows you to accept credit cards using any computer connected to the Internet, anywhere in the world, with no software to install! You simply access the Virtual Terminal and manually enter the credit card information. Our Virtual Terminal also includes access to Real-Time reports.

Retail Virtual Terminal - This includes all the features referenced above with the addition of an electronic card reader. Our Retail Virtual Terminal is ideal for any retail business where credit card payments are accepted. Used with the Magtec card reader, your credit card transactions are securely processed in seconds! Plastic Payment Professionals Retail Virtual Terminal supports a wide variety of powerful features, including comprehensive transaction management and reporting features to help you better manage your business.

Retail Swipe Terminal/Credit Card Machine - This solution is most desirable for retail/storefront merchants who see their customers face-to-face. A credit card machine is an electronic device used by retail businesses to process credit card transactions. If the customer is present, they swipe or slide their credit card through the machine.

Point-of-Sale Software - With PcCharge software you can accept credit cards for retail/storefront business with the addition of a card reader. Or, without the card reader it is also a popular solution for Mail/Phone Order businesses. PcCharge software can communicated using a phone line or a high-speed connection.

After determining what payment solution best fits your needs, an application must be completed. The application/merchant agreement is the contractual agreement between you the merchant and us and our processing bank. The documents can either be emailed or faxed for you to review and signed. The business owner(s) or an officer of the corporation will be required to sign the documents in order to accept credit cards.

The following items will be needed in addition to the merchant account application.
1. A business checking account
2. A copy of a voided business check
3. Have a web site (if you are Internet based. A web site is not needed for retail storefront businesses

Related Articles
  Credit Card Processing Accounts
  Credit Card Advance Financing
  Credit Card Processing/Merchant Account Basics
  Business Credit Cards versus Personal Credit Cards
  How Credit Card Processing Works

Article Tags: card, credit, ecommerce, merchant, online, payments, processing, services



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credit cards - Nana, you can get a credit card! Get a Secured Credit Card. It's a Visa or MasterCard which is a hybrid of a chequing/credit card. There are two types: 1. You put in an amount that you would like to have as your credit limit in $500 increments as security and you you can either pay in full each month or make minimum payments 2. You can have a credit card linked to your chequing account and you can spend only has much as you have in your chequing account. I recommend #1 and they both go to improving your credit limit.
Building credit - Credit is like reputations, I suppose. Takes a lifetime to build, and only a second to destroy.
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Marketing and PR ideas related to a Credit Organization - Hello Everybody! I would be very grateful if you suggested some PR and Marketing ideas for a Credit Organization which target market is poor public who live in village and haven't any access to the internet. Thanx in advance
Offer Credit instead - I'm not sure if ChrisH was referring to this but i'll state it more expicitly .. Charge upfront and offer a refund of double the value back in "Credit" towards your Product or Service you have for sale at the end of the event.


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