How to Get Started Accepting Credit Cards

Accepting credit cards may mean an increase in sales for your business.

Accepting credit cards as a method of payment may increase your customer satisfaction and sales numbers. Customers who have the ability to purchase items with a credit card may buy on impulse and spend more. Additionally, when your business accepts credit cards, the money is available to you sooner than if your customer paid with a check. Processing credit cards requires a merchant account and card processing equipment or software. Depending on your business, you can have a point of sale (POS), wireless or mobile system.

Things You'll Need

• Bank account information
• Merchant account

Instructions

1. Read the Fair and Accurate Credit Transaction Act (FACTA) on the FTC website. The FACTA provides a list of rules and regulations that a business owner must follow when accepting credit cards. For example, a merchant is not allowed to require additional information to accept a credit card. This means that you cannot ask a customer for an address, Social Security number, phone number or any other information to accept their credit card as payment. Checking the card against a driver license is for the sole purpose of ensuring that it belongs to the person who is using it. Make sure you understand all requirements and that you are willing to comply with the legal ramifications of doing so.

2. Research merchant account options based on your business situation. If you have an established business with good credit, visit your local bank. If you are a member of a membership store, such as Sam's Club or Costco, contact their membership desk for merchant accounts. They offer services to their members. You may be required to find a merchant account middleman, as most banks require years in business as well as established monthly sales volume. Visit the Come Back Credit website for an online middleman. According to the Business.gov website, the average fee for establishing a merchant account is $50 to $200.

3. Apply for a merchant account. You will need to provide your legal business information, bank account information and, if you are an established business, records of your previous sales. Your previous sales information will be used to determine rates and fees. Each time a customer uses a credit card to make a purchase, you are charged a fee on the total amount by the credit card company.

4. Install the equipment as instructed by the merchant account processor. Depending on your business structure, this may be a POS terminal (a box similar to what you see in stores), a small terminal that is portable and wireless or software for your computer. If your business is solely online, you will be given details on how to process the credit cards with a specific software or program provided by the merchant processor. Installation instructions will be given by the merchant. Installation is an easy procedure, even for those who are not technical.

5. Begin to accept credit cards. Review your bank account regularly to ensure that the correct funds are being deposited into your account and the appropriate fees are being charged.

Tips & Warnings

• The merchant provider you choose will advise you on the best method for processing your credit cards. You also will be given specific training.

• Consider calling other area banks to shop their fees associated with a merchant account, as they may vary widely.

References

• Business: Steps for Accepting Credit and Debit Cards
• Business: Merchant Account
• All Business: Advantages of Accepting Credit Cards Online

Resources

• Federal Trade Commission: FACTA
• Come Back Credit: Credit Card Processing