Most businesses accommodate electronic payments in addition to traditional cash payments. Additionally, many people now prefer to shop online and pay using their credit cards. You can take advantage of this by offering credit card processing as your business or as a part of your services. You can thus make money and sell your goods at the same time.
Things You'll Need
- Credit card processor
- Bank account
Operating Your Own Credit Card Processing Business
Approach your local commerce association to learn how to establishing this kind of business. Set it up by registering your business under your own trade name.
Look for an Independent Service Organization also known as an ISO. The ISO acts as a third party and will gauge your worthiness to offer credit card processing and to have a merchant account. Have the ISO verify your business along with its associated risks. Also have your business and assets examined to determine whether you are a low risk or a high risk firm.
Select an underwriter for your credit card processing business. Banks also function as underwriters for this kind of business. Make sure that the underwriter you choose is authorized to facilitate credit card processing for your merchants. It is also important to verify that your underwriter is authorized by credit card companies to offer their services. Banks are preferable because of their bank identification numbers which can be used to directly establish accounts.
Look for a terminal processing company. Do this after you have established the agreement with your underwriter. Lease terminals so you can save on costs.
Get training on how to process the credit transactions.
Familiarize yourself with batch processing and close your credit card terminal by sending to the acquiring bank transactions conducted throughout that day. You will earn reduced rates given by credit card companies. The acquiring bank will transmit money to your bank account through your merchant account.
Open Up A Merchant Account For Your Business
Set up a merchant account with your preferred merchant account provider.
Decide which type of merchant account you will use. Choose between a stand-alone terminal or one that is web-based. The latter is used for online transactions.
Install the software given to you by your provider.
Purchase or lease a terminal for credit card processing. This is applicable for stand-alone transactions or those who have a bricks-and-mortar store.
Forward the daily credit card transactions to the acquiring bank for processing. The bank will then send you money from these transactions through bank deposit.