How to Set Up Credit Card Processing for a Bed and Breakfast

Your merchant account provider will give you the equipment for credit card transactions.

It's unrealistic to expect your bed and breakfast customers to pay for their rooms in cash, so it stands to reason you'll need a way to take credit card payments. There are many credit card processing service providers, and the rates they charge may vary. If you have a good relationship with your bank and already have a business account, you may want to find out its terms first. In order to process credit cards, you will need to have a merchant account.

Things You'll Need

• Merchant account

Instructions

1. Open a merchant account. This account can be with your bank or any credit card processing company. Typically, banks charge lower fees but have stricter requirements for opening this type of account. They may want to know how long you've been in business, require a good credit rating or have other requirements. If you've been turned down by your bank, you can try an independent service provider. They charge higher fees but are easier to open accounts with.

2. Set up the equipment. Whether you gain a merchant account with a bank or through an independent service provider, you will be given hardware and software to process the actual transactions taking place at your bed and breakfast. In some cases, you may be able to have someone set it up for you, or you can do it yourself. The credit card machine will need to be connected to a phone line or the Internet. If you don't do a lot of transactions, you won't need a dedicated phone line. But if you do, it's best to have a line just for this so your guests won't have to wait for someone to get off the phone before their transaction is approved.

3. Accept credit cards. You can let your customers know that you accept credit cards by placing stickers on your door or at the reception desk. To process a card, simply follow the procedure specific to your credit card machine. Typically, this includes sliding the card, entering the transaction amount and then waiting for approval from the issuing bank.

References

• eCommerce Guide: All About Merchant Accounts
• Gaebler Enterprises: Accepting Credit Cards

Resources

• Visa: Become a Merchant