If you are running a business, whether it is a brick and mortar or an online store, the payment stage is an important one for successful operations. It is the stage where the customer concludes the transactions and makes a payment.
Customers can pay in different ways. Your store must accept credit card payments, as most customers prefer paying through their credit cards. You may use a swiping machine to accept credit card payments or accept them online through a gateway. This article explains how you can accept credit card payments.
How To Accept Credit Card Payments At Your Store?
If you are running a store, whatever may be the product, you would want to start accepting credit card payments. If you are running a store and want to accept credit card payment at the cashier counter, then this is how it can be done:
- You need to open either a merchant account or a PSP (Payment Service Provider) account to accept payments by credit card.
- A provider who could be a bank, a sales organization, or a payment processing company that offers a merchant account. You need to sign a contract with the provider to open a merchant account.
- If you open a merchant account, you will get a credit card terminal that can read credit cards.
- To open a merchant account, you need to pay initial setup fees, equipment fees, monthly fees, and processing fees. A transaction fee may be charged, which may be a flat rate or depend on the type of transaction.
- PSP or Payment Service Providers offer a complete solution, and there is no requirement of opening a merchant account. Usually, their services come with a POS (point of sale). Clover POS is an example of a POS system with many products. The credit card reader would be embedded into the POS terminal, and you can swipe directly as soon as you complete the billing using the terminal.
- PSP is recommended, as they are transparent with their fees, and payments are cleared and transferred to your account much faster. They are more suited for small businesses.
- Once you either have a merchant account or sign up with a PSP, you can start accepting payments.
- At the time of payment, depending on the type of terminal and card, you can either swipe the card, or the customer will tap it to carry out the transaction. Your terminal sends the data to the payment processing company that verifies with the bank if this card is valid and has the funds or limit to complete the transaction.
- Once the transaction is accepted, you get a message, and you can print the transaction slip.
- Periodically, the PSP or merchant account provider will transfer the payment to your account after deducting charges.
- You will be charged a markup amount on the transaction fee, which is generally lesser for in-person transactions happening in the store. This is because, in such transactions, the possibility of fraud is less.
- You can even accept credit card payments on to go, using your mobile phone or a device like a tablet. You need a portable card reader that you can get from the PSP. Just connect the card reader to the mobile and install an app given by your provider. It is a convenient payment mode for those on the go who want to make a sale at the customer’s premises or other places.
How To Accept Credit Card Payments Online?
If you have an online store and want to accept payments online, then you need a payment gateway. PayPal, Stripe, Amazon Pay, Shopify, and other such options are available for online payment. A platform like Shopify helps you to set up an online store along with the gateway.
Some providers offer a virtual terminal that allows you to convert your computer into a credit card terminal and accept payments over the phone. Online transactions are charged a higher markup, as there is a possibility of fraud.
Shopify For Online Payment
Online payment is simple and easy to use if you have an online store from Shopify. Your Shopify store has an in-built payment gateway called Shopify Payments. You don’t need a third-party provider, and your customer can make a payment online through your website.
Shopify Payment is simple to set up and use. There are no monthly fees to be paid, other than the standard transaction fee of 2.9% plus 30c extra.
