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Everything You Need to Know About Accepting Card Payments for Small Business
If you run a small business, you may wonder how to accept card payments from your customers. Card payments are convenient, fast, and secure, and they can help you increase your sales and customer satisfaction. But how do you get started with accepting card payments? What are the key factors that impact your decision making? And what are the challenges and tradeoffs involved in choosing a suitable solution for your business?
In this article, I'll provide you with a comprehensive analysis of the main aspects of accepting card payments for small business, including:
- The benefits of accepting card payments
- The different ways to accept card payments
- The costs and fees involved in accepting card payments
- The security and compliance issues related to accepting card payments
- The best practices and tips for accepting card payments
By the end of this article, you'll have a better understanding of how to accept card payments for your small business, and what to consider when making decisions about it.
The Benefits of Accepting Card Payments
Accepting card payments can bring many benefits to your small business, such as:
- Increasing your sales: According to a study by Visa, small businesses that accept card payments can see their sales increase by up to 30%
- Improving your cash flow: Accepting card payments can help you get paid faster and more reliably.
- Enhancing your customer experience: Accepting card payments can make your customers happier and more loyal.
- Expanding your market: Accepting card payments can help you reach more customers, both locally and globally.
The Different Ways to Accept Card Payments
There are three main ways to accept card payments for your small business:
- In person, using a card machine or terminal. This could be a countertop terminal, a portable version using Bluetooth or Wi-Fi, or a mobile version using a smartphone or tablet. You need a merchant account and a payment processor to use a card machine.
- Online, using a payment gateway on your website. This could be a hosted payment page, an integrated payment form, or an e-commerce platform. You need a merchant account and a payment processor to use a payment gateway.
- Over the phone, using a virtual terminal in an online portal. This is where you enter the customer’s card details manually on your computer or mobile device. You need a merchant account and a payment processor to use a virtual terminal.
Each of these methods has its own advantages and disadvantages, depending on your type of business, your volume of transactions, your customer preferences, and your budget.
The Costs and Fees Involved in Accepting Card Payments
Accepting card payments is not free. There are various costs and fees involved in accepting card payments, such as:
- Setup fees: These are one-time fees that you pay to set up your merchant account and your payment equipment. They may vary depending on the provider and the type of equipment you choose.
- Transaction fees: These are fees that you pay per transaction, usually based on a percentage of the sale amount plus a fixed fee. They may vary depending on the provider, the type of card, the type of transaction, and the risk level.
- Monthly fees: These are fees that you pay every month for maintaining your merchant account and your payment equipment. They may include fees for statements, reports, support, software updates, etc.
- Other fees: These are fees that you may pay occasionally or under certain circumstances, such as chargeback fees, refund fees, non-compliance fees, etc.
The Security and Compliance Issues Related to Accepting Card Payments
Accepting card payments also comes with some security and compliance issues that you need to be aware of and address. These include:
- Data security: You need to protect the card data that you collect and process from unauthorised access or misuse. You need to use encryption, tokenization, firewalls, antivirus software, etc., to secure your data. You also need to limit the access and storage of card data to the minimum necessary.
- PCI compliance: You need to comply with the Payment Card Industry Data Security Standard (PCI DSS), which is a set of rules and best practices for securing card data. You need to follow the PCI DSS requirements for your level of transactions, and complete a self-assessment questionnaire or an external audit annually. You also need to report any data breaches or incidents to your provider and the card networks.
- Fraud prevention: You need to prevent and detect fraudulent transactions and chargebacks, which are disputes initiated by customers or card issuers. You need to use fraud prevention tools, such as address verification service (AVS), card verification value (CVV), 3D Secure, etc., to verify the identity of the cardholder and the validity of the card. You also need to monitor your transactions and refund requests, and respond to chargeback claims promptly.
The Best Practices and Tips for Accepting Card Payments
To make the most of accepting card payments for your small business, here are some best practices and tips that you can follow:
- Choose a provider that suits your needs: Compare different providers and their features, fees, support, etc., and choose one that matches your type of business, your volume of transactions, your customer preferences, and your budget. You can also read reviews and testimonials from other small businesses that use the same provider.
- Negotiate your fees: Don't be afraid to negotiate your fees with your provider, especially if you have a high volume or value of transactions, or if you have a good track record of low chargebacks and fraud. You may be able to get lower rates or waive some fees.
- Educate yourself and your staff: Learn how to use your payment equipment and software properly, and how to handle common issues or errors. Train your staff on how to accept card payments securely and efficiently, and how to deal with customer inquiries or complaints. Keep yourself and your staff updated on the latest trends and regulations in the payment industry.
- Promote card payments: Let your customers know that you accept card payments, and what types of cards you accept. Display signs or stickers on your storefront, website, or marketing materials. Offer incentives or rewards for customers who pay with cards, such as discounts, loyalty points, etc.
- Ask for feedback: Ask your customers for feedback on their payment experience, and how you can improve it. Listen to their suggestions and complaints, and act on them accordingly. You can also ask your provider for feedback on your performance, and how you can optimize your payment process.
Emily Selman
5 out of 5 stars
I run a small food store in newcastle open market. Customers were asking me, if they could pay by card all the time. It took me just 10 minutes with James to setup my account on GB Pay and I was ready to accept card payment. And I don't even need a machine. All my compititors walk by and see how happy my customers are that makes me chuckle lol
Floyd Thomas
5 out of 5 stars
Sean referred me to GB Pay for my business. From the moment I enquired about signing up with GB Pay, I was looked after by Ash. He made the process easy to understand. From the application to helping me set up the app. I felt the extra care from him and glad I picked GB Pay I would recommend both GB Pay and Ash to help you with your needs.
Shoaibe Iqbal
5 out of 5 stars
Just recently signup for GB Pay, and absolutely loving it! So easy, made a lot easier by the helpful - Ash, sales rep who made it so helpful and nothing has been to much trouble. Big 5 stars for Ash and GB Pay. I have now had it for a week and I am so impressed. Payments are paid into my account the next morning as per my choice , highly recommend!!!
Conclusion
Accepting card payments for small business is not as complicated or expensive as it may seem. It can bring many benefits to your business, such as increasing your sales, improving your cash flow, enhancing your customer experience, and expanding your market. However, it also involves some costs, fees, security, and compliance issues that you need to consider and address.
By following the steps and tips in this article, you can make an informed decision about accepting card payments for your small business, and choose a suitable solution that meets your needs and expectations.