How Small Businesses Can Optimize Credit Card Processing
If you own a small business, you know just how important successfully navigating credit card transactions is for your business. Credit cards are used in transactions now more than ever, allowing you to accept payments from customers quickly and securely. Discover how modern credit card processing solutions can save you money and streamline your payments.
Understanding Credit Card Processing
There are various kinds of credit card processes that can occur. You can decide if you want to be able to have access to all of these or only some of them, based on the needs of your company, if it’s in person or online, what you want the user experience to be like and more. The different options include:
In-Store Processing
Using a physical card reader or POS system.
Online Processing
Through an e-commerce website or mobile app.
Mobile Processing
Using a mobile card reader connected to a smartphone or tablet.
Phone Processing
Manually entering card details for transactions conducted over the phone.
Choosing a Credit Card Processing Service
When you’re operating a small business, it’s essential to choose a credit card processing service with a solid reputation that allows for flexibility and growth. Other factors to consider when you’re choosing the service that works best for your business include:
Fees
Understand the different fees involved, such as transaction fees, monthly fees, setup fees and chargeback fees. Some companies offer low or no fees with high processing rates, while others provide high fees and low processing rates. Make sure to do your research so that you don’t fall into any hidden fees or unexpected costs.
Integration
Ensure the processor integrates with your existing POS system or e-commerce platform for ease of use. Choose your credit card processing equipment based on your needs and preferences.
Security
Security is an extremely important part of choosing the right processor for your business. You want to make sure your transactions are as secure as possible for the sake of your business as well as your customers. Look for compliance with PCI DSS (Payment Card Industry Data Security Standard) to protect your customers' data.
Customer Support
Reliable customer support is crucial for resolving any issues that arise during transactions. Make sure to do your research and read what other customers have said about customer service, ease of use, user experiences, etc.
Choosing a Payment Processor
There are a lot of factors to consider when it comes to choosing a company that works best for you. After you’ve decided and assessed what your priorities are, you can choose which company is best for you. Here are some of the most popular choices for small businesses:
Square
- Easy to set up and use.
- No monthly fees.
- Free POS software.
- Transparent pricing: 2.6% + $0.10 per in-person transaction.
- Suitable for mobile payments with a free reader.
PayPal
- Trusted by customers globally.
- Easy integration with online stores.
- No monthly fees for basic services.
- Transparent pricing: 2.9% + $0.30 per transaction.
- Offers in-person payment options with PayPal Here.
Stripe
- Robust API for customization.
- Excellent for online businesses.
- Transparent pricing: 2.9% + $0.30 per transaction.
- Supports a wide range of payment methods and currencies.
Shopify Payments
- Seamless integration with Shopify stores.
- No transaction fees for Shopify users.
- Transparent pricing: starts at 2.9% + $0.30 per transaction.
- Supports multiple payment methods.
Clover
- Comprehensive POS systems.
- Customizable hardware and software options.
- Transparent pricing: starts at 2.6% + $0.10 per transaction.
- Suitable for retail and restaurant businesses.
Stax by Fattmerchant
- Subscription-based pricing with no percentage markup.
- Transparent pricing: flat monthly fee + interchange fees.
- Comprehensive analytics and reporting tools.
Helcim
- Transparent, interchange-plus pricing.
- No monthly fees for low-volume businesses.
- Free POS software and hardware options.
- Excellent customer support.
SumUp
- Simple and affordable card readers.
- No monthly fees.
- Transparent pricing: 2.75% per transaction.
- Suitable for mobile businesses.