The world is now ruled by plastic money for its convenience and flexibility. Security is also a major reason that people no longer carry heavy cash. Instead, credit cards can take care of their financial transation in a swipe. Small business houses are also taking the advantage of credit card payment but not many understand the jargons behind it. Many small business units plunge into this revolutionary payment option without thinking about anything.
The following article provides a brief overview of certain factors that must be considered before setting up a credit card processing machine at your small shop.
Know about Credit Cards
Do not go by the mass psychology. Depending upon your nature and volume of business, consider whether it is feasible to accept credit card payment. If yes, then try to understand the entire processing of the payments donethrough credit card. Setting up a credit card processing machine might seem to be a simple task. Your attention must be on other aspects like the terms and conditions, merchant banker, processor, issuing bank and many more.
Credit card processor
You will have to choose the credit card processor depending upon factors like
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Business nature
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Where is the business
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How you make sales
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Customers
In case you are running an online store then your focus will be on virtual payments. You must pick processor that can serve the purpose. Similarly, in case of mobile business wherein you do not have a fixed point of sale, consider mobile processor. There are several options available for even small business units.
Security
When it comes to security standards, be it small or big, you must ensure the same set of rules. You must enquire about your vendor’s security compliance and procedure. Understand the technical jargons and its significance like
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Data security Standard
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Security Socket Layer
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End to End crypt ion
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Payment Card Industry
Processing fees
Processing of the credit card payments may involve some other fees charged. You must be aware of these fees and get an idea of its total value in your total sales revenue. Some of the fees usually charged include:
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Gate way fees
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Transaction fees
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Verification charges
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Minimum monthly charges
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Fees for statement
Other requirements
Credit card processing companies will lay minimum revenue requirements. Only if your business has the capability to earn the minimum revenue can your application be accepted. This is to ensure that the charges are paid by you on time.