The Best Way to Accept Cards in your Business

Many business owners begin their business by accepting the standard forms of payment, including cash and checks. The decision of whether or not to accept cards as a form of payment in your business is based upon a number of factors, and these considerations should not be taken lightly. Should you choose to accept cards for payments, there are issues of cost, security, ease of managing accounts receivable, and accommodating the desires of your consumer base that you will need to take into account. Many business owners ultimately conclude that the ability to accept cards is well worth the relatively minor cost.

Service Businesses

In a service business, there are a number of methods by which to accept cards for payment;

• Face-to-face – If you have a service business where you perform the service with your clients present, frequently you can accept cards right on the spot. If your service is provided at your office location, you may have a credit card terminal to process transactions, and if you perform the service at the client's location (such as HVAC or other home based services), you may accept payments through an alternative system such as an internet gateway, or via phone.
• Internet Gateway – An internet gateway is a great way to accept electronic transactions from credit cards over the internet, making the transaction very easy in terms of providing your customers a way to pay you 24x7, with limited involvement needed from your billing department. A simple gateway provides the capability to process the transaction, and provides you the needed reporting.
• Over the phone – Many merchants choose to accept payments over the phone, and process the transactions through their own credit card terminal. This is a fine solution for those business owners who are very comfortable with whom they are dealing over the phone. There are potential cardholder security issues to address if the business owner in unfamiliar with the consumer however.

Retail Businesses

In a retail business, it's practically become a requirement to accept cards as a form of payment. In the retail business, considerations include;

• Card Brands – Will you accept all card types including Visa, MasterCard, Discover Card, and American Express, or would it be easier to simply accept Visa and MasterCard transactions? In our experience, a business owner will generally want to provide consumers as many choices as possible, but you will want to consult your merchant services professional regarding your specific target market. Remember that processing transactions through the Interac system is one of the most affordable ways to process payments in a retail business.
• Card Types – Will you accept gift cards as well as credit cards and Interac? In the retail sector, gift cards are becoming more prevalent, and they are a great way to keep loyal customers coming back to you for your products.

Once you've made the choice to accept cards as a form of payment from your customers, the next step is to contact a merchant services professional to evaluate your specific situation, and provide you with a quote for the (1) Card Processing Services, (2) The Hardware or Gateway by which to process, and (3) any other services that may apply to your business such as gift cards or other advisory consultation. The credit card business has become quite competitive over the past few years, so you should not find that one provider has dramatically better or worse rates than any other provider – Most should fall within a close range, and you should choose the provider that gives you the best information about how they plan to enhance your overall opportunity to create efficiencies and minimize costs in your process of accepting payments.