A Guide to Accepting Credit Cards For Small Businesses

Emma Sturgis

April 08, 2015

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Javelin Strategy & Research predicts that over three quarters of all point-of-sale purchases will be made using cards by 2017. This is a clear sign that even the smallest of businesses should get in on the action and begin accepting credit and debit cards, if they aren’t already. However, the process involved can be a bit confusing, and there are a number of options available. Having a solid understanding of these will help small business owners stay ahead of the competition.

Available Options

There are several different ways in which small businesses can accept credit and debit card payments, and the choice will depend on how a business operates, the goods or services that they sell and the equipment that they use. Small businesses generally utilize either an online card processor, a mobile card processor or a merchant account.

Online Card Processing

Many small businesses want to use the easiest way to process debit and credit card payments, and this generally involves going with an online card processor. These are best for companies that do not handle large volumes of card payments each month. While it sounds like they may only be appropriate for companies that do business online, this is far from the truth. Many online payment processors will operate just fine using a swiper connected to a smartphone, tablet or point-of-sale system. They are also very secure as they use the latest in encryption technology.

Mobile Card Processing

Mobile credit and debit card processing is perfect for companies that interact with their clients in the field. This includes businesses like painters and heating and air conditioning companies. Like online card processing, businesses will have to utilize a smartphone or tablet that has a data connection and a swiper to accept payments. However, they will also generally need a merchant account to process payments.

Merchant Accounts

Merchant accounts are the more traditional way for businesses to accept card payments. They are very secure and generally integrated into the point-of-sale system. An expert from One Payment suggests that businesses operating on-the-go, like food trucks and independent vendors, look into mobile processing solutions to allow credit card payments anywhere business is conducted.

The Bottom Line

While there are a few decisions to be made when a small business begins accepting credit and debit cards as a form of payment, the process is not as daunting as it may seem. In addition, people can benefit from taking the time to set up a card payment system as just a little work will pay off long into the future.