No matter what services or products you offer, running a business can be challenging.To ensure flexibility in closing deals, you will want to accept credit cards as a merchant.If a customer wants to buy your product and you do not accept credit cards, you can't get paid.This wouldn't be a problem for a credit card merchant.Accepting plastic will give you many benefits to your bottom line.
Step 1: If you don't have a business license, get one.
If you don't already have a business license, apply for one on the Secretary of State's website.You will need a license to apply for a merchant account.You will have to wait until you have the license before you apply for a credit card.Depending on your business type and state, a small fee may be required for a business license.The Secretary of State's website has more information.
Step 2: You can open a business bank account.
You will need a dedicated business bank account to apply to be a credit card merchant.You will be able to use this account for all of your credit card transactions.Processing fees and other fees may be charged to the account before you receive any customer money, so make sure to put in a small initial balance.The amount of required balance is dependent on which payment processor you use.
Step 3: The data security requirements need to be met.
All businesses that accept credit card payments are required to follow the same data security standards.The Payment Card Industry (PCI) standards require certain levels of card verification and data security.The payment processor handles this, but it is up to you to make sure that they follow the rules.Online transactions are usually protected by your payment processor and selling platform.
Step 4: Make sure you have enough revenue.
If your business earns a certain amount of revenue each month, it will be considered for credit card merchant status.Depending on the processor, this requirement can be as low as zero, or as high as $10,000 per month.You might be rejected if you don't meet the threshold.With so many processor options, you will probably be able to find one to service your business.
Step 5: A merchant account is required.
Commercial banks that facilitate merchants' acceptance of credit card payments are called merchant banks.A merchant account is required to receive credit card payments.The merchant banks process payments using one of the major credit card networks, which makes sure that payments go to the right issuer.You can find a list of merchant banks on the websites of the major credit card brands.You can compare how much their services will cost by contacting them and asking about their rates.Merchant banks charge a percentage of each purchase as a "merchant discount."This figure can be used to compare the costs of merchant banks.Basic information like your business's name, founding date, type of business, address, and phone number are needed when applying for a merchant account.You have a tax ID and a social security number.Your monthly revenue and whether you do business in person, online or both are processed.Your account number is included with your bank information.
Step 6: Aggregator is a good way to consider using it.
Aggregators are not financial institutions.They can still facilitate credit card transactions.Aggregation is how PayPal operates.You can accept all major credit cards and charge a discount rate based on your sales volume.Smaller businesses may not be able to meet the revenue requirements of some larger merchant banks.
Step 7: A payment processor can be found.
If you don't meet the requirements for a merchant bank, another option is to use a credit card processor.These companies act as the merchant account holder for a number of smaller businesses, helping them accept credit cards.They act as a middleman between your business and the merchant bank, and give you access to credit card sales.It is important to remember that using a processor may be more expensive than using an Aggregator.If your business isn't large enough to meet the requirements for partnering with a merchant bank, you should use a payment processor.
Step 8: Mobile payments can be set up.
If you are a mobile business or a growing business that attends trade shows or similar events, it may be beneficial for you to find a processor that can help you accept credit cards on the go.A card reader that plugs into your phone or tablet is usually provided by these processors.To find one that fits your business, look into several of these processors and their related fee structures.Food trucks or pop-up shops can use mobile payment processors.They are easy to set up and use.They will be more expensive than using an aggregation.The fee structures for these processors should be looked at.Flat per-transaction fees and card scanning fees can eat into your profit margins.Square, Payanywhere, and Amazon Local Register are some of the processors that are active in this market.
Step 9: Determine processing fees.
Merchant banks charge a percentage of each sale based on a "merchant discount" rate.Variable discount rates, fixed transaction fees, monthly fees and startup fees are just some of the fees that can be more complicated.Before choosing a processor, look into the fees and what they mean.It's important that your processor only charges a discount rate for sales.If a customer returns an item, you will be charged twice: once when the item is sold and again when it is returned.You wouldn't have made an actual sale if you were charged twice.
Step 10: Decide what cards to accept.
It's a good idea to accept all major credit cards.It is impractical for small businesses to use certain card types that charge higher discount rate fees.If you feel that you are losing customers because of it, you can always choose to accept only two or three of the card types now.
Step 11: If necessary, open another account.
You may be required to open two separate merchant accounts.If you plan to accept online check payments, you will need to open a separate merchant account.You may need to open separate merchant accounts to accept different types of payments.It is a good idea to make a judgement on whether or not the application process is worth it.
Step 12: You can transfer your storefront account online.
You can use the same merchant account for both your physical and online businesses if you have a physical location.Consolidating your accounts can simplify your accounting and payment processes.Get help setting up online payments by talking to your merchant bank.