Accepting Credit Card Payments
For Offline Businesses

Accepting credit cards as a payment option will dramatically increase revenues, as any smart business owner knows. Not only does it give customers the convenience of not having to carry around cash or checks, it lends a quality of professionalism to your business as well. The process of applying to become a credit card merchant can be complicated, so let's take a look at how it works.

The Merchant Account

First, youll need a bank account called a merchant account where your credit card receipts will be processed. A merchant account differs from a regular business checking account in that it is used only for credit card transactions. Not all banks offer merchant accounts, and you are free to choose the one that offers the merchant account options that work best for you and your company. This account enables you to process your credit card transactions through their banking establishment.

Read The Fine Print

What you need to pay attention to are the fees. These fees will come in three different forms. First is the initial set-up fee (pretty self-explanatory). Next is the percentage which the provider from each transaction based on amount of sale. And last is the monthly service fee. All three fee categories should receive your undivided attention; together, they determine how much your credit card income will cost you.

Also, look for contract obligations. Some providers will offer great deals, but will want to lock you into a long-term contract. You need to be aware of what, if any, penalties will be charged for canceling the contract if things don't work out.

How Do I Actually Get Paid?

Obviously, this is pretty important. If a customer has used a credit card, no money has actually changed hands. Since more and more customers are now using credit cards, how that money gets into your account, and when, is vitally important.

Any of the reputable merchant account providers will put the payment into your account within 24 to 48 hours of the transaction. Whether the card customer has a balance, or credit available on that card is no concern of yours. The bank takes that risk and pays you anyway.

Disputed Transactions

If the customer disputes the transaction, the bank is usually under no obligation to pay you, especially if that dispute has been deemed acceptable. If a business owner has a high number of legitimacy claims against them, the merchant account provider may cancel their contract.

The majority of the time, though, things go as planned. The money shows up in your account within a day or two, and you reap the increased revenue benefits of accepting credit card payments.