How to Accept Credit Card Payments

Credit cards are a central part of the modern shopping experience, and if your business can’t accept credit card payments, you’re probably missing out on meaningful revenue. Luckily, you won’t have to jump through too many hoops to process credit card payments. Consider these three simple payment-processing methods your company can implement, along with the pros and cons of each.  

Go digital with an E-­commerce platform  

Do you sell your products online through an e-commerce marketplace? If you do, your platform likely offers an in-house credit card payment processor. In addition to accepting payments from major credit card companies, many platforms let your shop accept gift cards. To set this up, you’ll generally need your employer identification number and account information from your financial institution. When you build a store on one of these platforms, you may be able to integrate the payment processor into your existing website or build an online storefront from scratch. Many e-commerce platforms offer a free trial period, so there may be little risk when starting a shop. However, if you choose this route for the long term, you may pay a premium for the convenience, since e-commerce platforms often charge higher fees than other credit card processing methods.  

Pick up a payment service provider  

Although they are not quite as convenient as an e-commerce platform, payment service providers are also a quick and easy way to accept credit card payments. Popular providers offer flat rates and no contracts, so you can cancel at any time. Still, it is important to review the fees carefully, especially if your shop processes a smaller volume of annual sales.  

Move up to a merchant account  

If your company is committed to processing credit cards and electronic payments, consider opening a merchant account at your financial institution. This allows your financial institution to serve as a liaison for you, so you don’t have to worry about complex details like payment authentication. However, setting up a merchant account is a longer process than the other methods. You’ll need paperwork on hand to open your account, including your desired payment model, your company’s tax returns, a list of its business activities and information on your other accounts. You’ll also have to choose which countries your store will serve and which credit cards you’ll accept. Although accepting more credit cards can be more expensive, it can also help you avoid turning away customers and may lead to greater sales. Despite the more complicated setup process, a merchant account is often more affordable than the previously listed options. However, merchant accounts can involve multi-year contracts, so if you’re just getting started with a new business, consider beginning with a less-committed payment processing method.  

Bear in mind that every form of credit card processor will include fees. These can include setup fees, statement fees, early cancellation fees and transaction fees that take a small percentage from each sale. In addition to these costs, many processors require a monthly minimum fee.  

Despite these costs, accepting credit cards can give your sales a massive boost. If you’d like more information on setting up credit card payments, contact an advisor or specialist at your financial institution. 

Take your business to the next level 

From tracking your inventory to taking payments, Five Star Bank offers tailored merchant services solutions backed by trusted technology and local support. In partnership with Fiserv and Clover, we make it simple to manage your business and accept payments securely, quickly and in the way your customers prefer.