Whether you have your business in a retail outlet or online or a combination of both, credit cards are the norm these days. Of course, there are still some customers who prefer to pay using cash or debit but most people have a credit card and use one these days. And, if you assume that you will have enough traffic flow by just catering to the non-credit card community, you might be right but you might also be turning off potentially high-valued customers, and those who could give you repeat business. By not accepting credit cards, the word gets around too about your limitation in that respect and it may turn some would-be customers away.
In 1996 itself, credit card payments accounted for 88% of the $1.25 billion online transaction revenue, according to Jupiter Communications, which is an electronic commerce research firm in New York. And, their forecast is that credit card payments will account for over 50% of revenue in payments over the next millennium.
So, accepting credit cards these days is extremely important. It helps to attract more customers to your business and it does it in two ways: 1. By lending credibility to your business It is the common conception that only reputable and credible companies accept credit cards. 2. By providing a safe buying environment All web pages that accept credit card payments have encryption features and they are secured. Further, when making a purchase online via credit card, customers are liable to credit card companies for only the first $50 in the case of fraud.
You have to be aware though that the fees for accepting credit card payments online are higher than in situations when a physical card is present. This is due to the nature of Internet transactions: there is no customer to sign for the purchase nor is there a physical card. This type of transaction-"Card Not Present" or "Mail Order/Telephone Order" transaction is categorized as higher risk and therefore comes with a higher fee. But, in the long run, the higher fee is well worth it. It will result in a larger customer base and one that is more qualified in terms of the money they are willing to spend. This will eventually lead to higher turnover for you.
You have to just bite the bullet when it comes to incurring the charges to set up a merchant account to accept credit cards but it is better to run the whole gamut and set up everything right as well. So, make sure that you also use a real-time authorization and processing service such as CyberCash.
Accept credit cards and be counted in as a merchant in step with the times.
If you are just starting your own shop then you may be looking at how you can accept credit cards. Being able to accept card payments is important for your business however there is a lot of leg work before you are able to do so. Without going into too much detail the following are the three essential steps to being able to accept card payments. So here goes.... Step 1) Set up a Merchant Account Before you can do anything you need a merchant account. There are 9 banks in the UK that offer . These banks are known as acquiring banks and they will request a lot of information before from you in order to scope the type of business you are operating in so that they can determine the payment you will have to pay for each transaction. Some of the information they may require includes:
? your business history and performance ? business accounts ? your forecast turnover ? expected average transaction values and volumes on credit and debit cards ? transaction frequencies ? the type of goods you sell ? the proportion of transactions you expect to receive face to face, by phone, mail order, or online ? your suppliers' details ? how you deliver your goods or services
It can take anything from one week to four weeks to open a merchant account. For start-up business it can take even longer as the banks may require even more information, however rest assured that it is well worth doing all this in the long run
Step 2) Set up your card processing equipment Once the merchant account has been accepted you are then free to get your card processing equipment. Normally your acquiring bank will provide you with one on a rental basis. All you need to consider is whether you want a small PDQ machine or a fully integrated till system.
Step 3) Connect Your Terminal Once you have your credit card terminal you then have to connect it up. This is probably the most simply of the three steps as all you have to do it connect it to a telephone line. This can be an existing phone line however it is recommended that you get a dedicated line for it in order to avoid interruptions. Once it is connected you are up and running!
Voila that is the three steps to accepting credit card payments in its most simple form. There are plenty of resources on the web that can help you alternatively it is always worth checking with your existing back first as they can sometimes provide the best deals.
Both Wendy Wood & Henry are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Wendy Wood has sinced written about articles on various topics from Low Carb Diet, Lose Weight and Credit Cards. Wendy Wood is the owner of an online . Sign up for free Gift Basket Business Tips. Wendy Wood's top article generates over 12100 views. to your Favourites.
Henry has sinced written about articles on various topics from Home Improvement, Debts Loans and Credit Cards. Dan Ashcroft has worked in the sector for the past 15 years. For more information visit http://www.seymourdirect.co.uk. Henry's top article generates over 1000000 views. to your Favourites.