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Processing Credit Card Payments

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Tens of thousands of people spend their days selling every imaginable product at their local swap meet. Furniture, sunglasses, old LPs, posters and other items are relentlessly hawked to passersby every day. If you operate your business at a swap meet, you've likely realized that the days of accepting cash as the only method of payment are over. Today, if you want to motivate people to buy your wares, you'll need to process credit card payments. Your competitors are doing so. And at the swap, every merchant is your competitor for customers' limited time and money. Below, we'll explain how you can process your customers' credit cards by using your cell phone or laptop.

Using Your Cell Phone

When you apply for your merchant account, you'll have the option to purchase a credit card terminal. It's a leased piece of equipment and often requires that you sign 2-year commitment. While the monthly charges may seem negligible, they can become expensive. If you're only renting a booth at the swap meet during the weekends, you may not be selling enough to make having the card terminal worthwhile.

Many merchant accounts are designed for business owners who would rather forgo the expense of the terminal and call in their customers' credit card purchases. Instead of swiping your buyer's card, you can call your merchant bank's automated system to verify your customer's funds and process the transaction.

Many people who rent booths at a swap meet make a note of the buyer's credit card number along with details about the transaction. Then, when they arrive at home, they process the payment. The danger in doing this is that the funds may not be available. And by that time, it's impossible to recoup the loss. It's much safer to process the purchase in front of the customer.

Using Your Laptop

If you find that using a cell phone to process payments is uncomfortable and inconvenient, you can use a laptop. As long as you're able to connect online, you can login to your merchant account and enter your customer's credit card number and other relevant details (the card's security code, expiration date, etc.). As soon as you submit the details online, your merchant account will either validate the transaction or decline it (along with a reason why it was declined). Most wireless carriers offer plans that include internet access for your laptop. As long as you're able to power your laptop, you'll be able to accept your customers' credit cards.

Offering The Option

The people who visit swap meets expect merchants to accept credit cards for purchases. In many cases, buyers won't even carry cash with them. So, if they want to buy an item that you're selling and you're unable to process their credit card, you may lose their business. What's worse, if you're selling a common item and other merchants accept credit cards, the added convenience will sway many customers away from your booth.

For all but the smallest of swap meet vendors, having the ability to process credit card transactions is essential, especially if you're selling expensive items. Fortunately, it's easy to qualify for a merchant account and you can do so without the expense of leasing a credit card terminal. You can use your cell phone to verify and process order or simply use your laptop to process them online in front of the customer. You'll find that allowing your customers to purchase items with their credit card will help your business grow.

Processing Credit Card Payments

Running a business requires the ability to process credit cards. Without it, many of your customers won't make the critical decision to purchase. But, processing credit cards can be confusing to the uninitiated. There are several methods through which the processing is executed. Choosing the method that makes sense for your business is largely a matter of understanding how each methods works. Below, we'll give you an overview of the many methods available to you for processing credit cards transactions.

Credit Card Terminal

These small black machines litter the landscape of the traditional marketplace. Millions of stores use them to process credit card transactions. Typically, a customer's credit card is swiped through a thin trench on the box. This allows the terminal to read the magnetic strip on the card. Then, it uses a modem to contact the card's issuing bank to receive authorization for the requested charge amount.

The industry that supports and promotes credit card terminals to businesses is rife with hidden fees and contractual blind spots. Though a terminal may be a perfect fit for your business, be wary as your search for the best deal.

Automated Response Unit

Often, it's necessary for businesses to accept credit card payments from customers who order by phone. An Automated Response Unit (ARU) is used to allow customers to enter their card information using the buttons on their touch tone phone. An ARU can be a good option for those businesses who want to avoid the cost of implementing a credit card terminal.

Payment Gateway

Merchants who need to process credit card transactions online can do so by using a payment gateway. Once a customer's card information has been entered on a website, it is encrypted and forwarded to the card's issuing bank. The issuing bank responds by either approving or declining the charge request. This response travels the same route as the initial request, passing through the gateway. Eventually, the response is delivered to the website and the appropriate action is delivered to the customer. The process from the initial request to the website's action only takes a few seconds.

Tiered-Level Purchasing Cards

Purchasing cards were designed specifically to be used by businesses (or various government agencies) for the purpose of paying their suppliers or service providers. Many companies find "P-cards" convenient because they allow for higher-volume purchase orders without the processing work that conventional purchasing methods entail. A corporation may purchase thousands of items during its fiscal year. Paying suppliers usually requires an immense amount of paperwork and administration, often delaying payments. P-cards relieve much of that workload.

It's worth noting that the fees associated with accepting payments from these cards can be exorbitant. However, a business can significantly lower those fees by providing "level 2 or level 3 data" about the transactions.

Merchant Accounts

A merchant account is an arrangement between a business and a financial institution that agrees to accept credit card payments on the business's behalf. In effect, a bank provides the business with a line of credit. Merchant accounts carry many of the same inherent risks for the bank as a conventional line of credit. As a result, they often place limitations on which merchants are approved.

Merchant accounts are offered to businesses by banks or agents (called ISO/MSPs) who are sponsored by banks. Most small businesses acquire merchant accounts through the agents because the approval process is often easier and smoother. Plus, many of these agents can provide additional services that can be valuable to small businesses.

Choosing A Credit Card Processing Method For Your Business

Deciding on which method of processing credit cards makes the most sense for your business isn't easy. Not only are there several from which to choose, but there can be hidden fees and charges that can ambush someone who isn't familiar with the industry. Take the time to analyze the needs and budget of your business. There is a solution that can be a perfect match. Identifying that solution requires that you research all of your options.

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Ryan J Bell has sinced written about articles on various topics from Customer Service, Free Credit Report Score and Asthma. This article is brought to you by PaySimple, a leading provider of services.. Ryan J Bell's top article generates over 49500 views. to your Favourites.

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