When you run a business, you want to be paid. If you are not paid, your business will fail. Many new businesses start out by preferring cash payment. Why? Because it is simple. Yes, handling cash is simple, but in the long run, cashless payment is just so much simpler.
Transactions occur quicker than cash payment. Your business does not have to stick to a brick and mortar store and can even move online. Additionally, many avoid cash-only businesses because of the payment inconveniences it causes.
It also works as a boon for your tax management and book keeping as credit card payments ensure that the payment is recorded on several levels and makes it easier for you to record them.
So, your business should also accept plastic for payments and not just stick to cash and checks.
Things You Need
- Merchant Account: You accept your customers’ credit card payments through a merchant account that passes the money along into your account. There are various merchant accounts you can use in Canada.
- Point of Sale (POS) System: Any POS system consists of a cash register, credit card reader and receipt printer.
- Shopping Cart: If you are selling online, you need a shopping cart.
- Payment Gateway: A form that users enter their payment information. It needs to be extremely secure.
Credit Card Processing Solution
Deciding on a credit card processing solution depends on what kind of business you are running.
- Brick and Mortar Store
For a brick and mortar store, a simple card reader that connects to your POS system and your merchant account is sufficient.
- Online Payments
If you sell many items online, you will require a shopping cart. A secure payment gateway is necessary. After the payment details are processed by the merchant account, the payment is sent to your account.
Paypal is also an option you can offer your customers for online payment.
Paying through a smartphone is becoming a common occurrence and your business should be ready for it. The mobile becomes the card reader with the required software. After the details are processed by the merchant account, the money will be sent to your business account.
At the core of it, there are three transaction fees that you will be paying with credit card payments.
- Set up and service fees
- A percentage of the transaction
- A fixed amount per transaction
Ensure you include this in your costs so that you don’t have to bear the burden alone.
This should be enough to get you started on credit card payments for your customers. It is always best to give your customers as many payment options as you can. This proves that your business is working towards their convenience. Once you set it up, you just have to sit back and let the system work.