How to Take Credit Card Payments at Your Small Business

how to take credit card payments small business debt cards processing

Now more than ever, it’s crucial to accept credit card payments. 

There are several benefits when you accept credit and debit card payments for your small business. If you learn how to accept credit card payments, you can boost your sales. You’ll also improve cash flow and provide a better experience for your customers. 

Today, nearly half of all businesses don’t accept debit and credit cards. By learning how to take credit card payments, you’ll also gain an advantage over competitors. 

Getting Your Piece of the Credit Pie 

Debit and credit cards are the most popular form of payment in the United States. Last year, for example, six out of ten Americans held a credit card, according to the newest Consumer Credit Card Industry Study. 

Setting up credit card payments for small business is a no-brainer. United States consumers spend trillions of dollars and take on billions of dollars in debt using millions of credit cards, according to the report. It makes sense to learn how to set up credit card payments for small business so that you can capture a more significant piece of that revenue. 

Since the Federal Reserve started tracking credit card use, consumers have increased the use of the financial instrument 100-fold. In 2022, credit card spending increased by $95 billion. 

This growth represents the most significant surge in credit card spending in one year since the Great Recession. It’s also the fifth-largest expansion in over three decades. 

More than two-thirds of American credit cardholders have a revolving balance. The study shows that once a consumer acquires a credit card balance, they are more likely to continue to maintain a revolving line of credit. 

Debit cards are the most popular financial instrument used by consumers. People use debit cards twice as much as credit cards. 

Consumers prefer to use debit cards for small daily purchases. However, they prefer credit cards for larger purchases. 

There is a difference in financial instrument popularity among people with varying incomes, however. Consumers who earn less than $100,000 per year prefer debit cards, while those who make more than $100,000 per year prefer credit cards.

The Need to Accept Credit Cards Will Skyrocket 

Before the current pandemic, the way that consumers buy things was already changing. Now, people are more careful when they shop in public places. 

Also, more people are working from home as well as shopping and paying bills online. Because of these changes, there is a drastic increase in the need to process debit and credit card payments. 

To date, it’s unknown if it’s safer to use a debit or credit card compared to cash. However, most people aren’t willing to find out. 

A growing number of consumers are increasingly interested in contactless payment. In light of recent events, consumers are embracing alternative payment methods such as contactless payment and digital wallets. These relatively new payment methods are more secure and require less physical interaction. 

Additionally, more people are turning to the internet to buy everyday products. Now, consumers go online to buy household essentials, such as groceries. 

Businesses who make the transition to online sales will thrive in the new economy. However, it will take work to stay supplied. 

Analysts warn that although there’s a massive spike in debit and credit card use, overall sales are on the decline. As a business owner, you should set up credit card payments not just to make more money – you must do it to survive. 

How to Take Credit Card Payments: Getting Started 

If you want to receive payments in a brick-and-mortar store, you need a merchant account. You’ll also need a business bank account and equipment to process credit card transactions. With a merchant account, you can accept Visa payments and payments from other credit card processors. 

Typically, the setup fees for a merchant account ranges from $50 to $100. You’ll usually also incur monthly statement fees that fall between $4 and $20. Additionally, you’ll pay $0.05 to $0.50 per transaction. 

If you want to operate an online store, PayPal is the world’s largest online payment processor. Anyone with an email address can use the service. 

Many online retailers take advantage of PayPal’s “Buy Now” button. The button makes it easy for customers to check out quickly. 

When a customer pushes the button, PayPal processes the payment and sends it to your merchant account. Afterwards, PayPal will send the customer back to your website. 

An Integrated Merchant Solution 

Alternatively, you may need a more robust merchant solution than PayPal. For example, you may need to store customer credit card information. 

The Microsoft Dynamics 365 Credit Card Processing platform enables you to store credit card details in your CRM system. The platform encrypts information to protect customers. 

By storing buyer information, it’s easier and faster to take and fulfill orders. You can also use this data to make issuing refunds easier. 

Microsoft Dynamics 365 Credit Card Processing also makes it easier to comply with Visa card regulations and credit processing best practices. Furthermore, you don’t have to manage the responsibility of storing customer credit card information. This ability reduces the liability faced by your company. 

Gearing up for Successful Merchant Account Deployment 

It’s helpful to think beyond how to take credit card payments. For example, what if you could integrate your credit card payment system into customer relationship management software (CRM)? The Microsoft Dynamics 365 Credit Card Processing is part of a powerful suite of business software. 

You can customize the platform for the unique needs of your business. For example, the program integrates perfectly with Microsoft Dynamics 365 Sales CRM. 

Microsoft Dynamics 365 is a powerful platform that can take your business to the next level of productivity. However, there’s a learning curve involved with this powerful technology. You can save money and resources by teaming up with an exceptional consultancy and service provider. 

Now that your small business knows how to take credit card payments, learn more about the latest in fintech and payment processing by visiting the Tech and Finance sections of the Frugal Finance Blog.

Official Bootstrap Business Blog Newest Posts From Mike Schiemer Partners And News Outlets