Credit card payment options are now needed more than ever. Whether those purchases are for gifts made via telephone, registration fees for conferences and trade shows, booth expenses or retail shops and art fairs, there are ways now to acknowledge and accept payments using credit cards. Accepting payments through credit cards used to be costly and very complicated.
Among other things, there is a lot to pay up: a setup expense, charges for subscription, and fees on each deal you made. Today, and considerably a good thing, many applications surfaced doing credit card processing. Be it through smartphones and tablets, the availability has rendered the procedure less
demanding, less expensive, and very portable and mobile.
Pay Per Use
A large portion of these services offers pay-as-you-go plans, in which you pay for a per transaction fee which is in a fixed percentage.
In spite of the fact that these expenses are ordinarily higher than what you’d pay under a conventional arrangement, these more current applications can give any small business a straightforward, practical approach in accepting credit card payments. Also, rather than making you put your resources right away into a costly card reader, they offer card readers for free initially. Even better, these can fit in your pocket or bag and bring it anywhere so you can do your business transactions. Simply connect one to the audio jack of your smartphone or tablet and open the application. Once online you’re prepared to process payments for your merchandise or services with a customer’s credit card.
A large portion of these plans even includes an inventory system. This is regarded as a value-add along with the payment systems. Other providers can issue a full POS system, which will give you a cash drawer and a printer for receipts.
Understanding The System
As there are many steps involved in processing the transactions many are finding them to be multiple and complex as it often involves many different vendors and administrations also.
A merchant account had to be set up with a bank. After that is done, you need to purchase or rent a card reader to be able to proceed with the onsite transaction.
Collecting and entering the credit card information is the initial step. To process the payment, you first need to enter the customer’s information by manual or electronic means. The person making the payment has to agree that the amount to be paid for is correct and that by swiping and signing he/she is agreeing to pay through an online system. Verification should also be done to the customer based on the signature at the back and the name on the card.
Once the payment data is keyed in, the payment is processed to check if the credit card account exists and has enough balance to authorize the payment. Only then will the processor charge the card.
Security First And Last
Assuming credit card transactions requires consent. One must sign an agreement for maintaining the Payment Card Industry Data Security Standards, ordinarily known as PCI prerequisites. Part of this is making sure security is observed at all times. There is ensuring that the equipment and the software are secured. Case in point, the use of a card printer will require that you file the printouts. One also needs to destroy the copies of the slips after these have been properly recorded. The use of a POS terminal or online payment method also needs to be secured and encrypted to protect the customer’s credit card data.
Not following the PCI prerequisites can bring about a considerable fine and the loss of your permission to accept payments by credit cards. It is short of saying that should the data get into the wrong hands, you lose your customer’s trust of course.