Most small business owners launch their businesses on a shoestring budget.
They bootstrap themselves into a position whereby they can at least meet their ongoing expenses - while maybe setting a little bit of money aside for themselves when they can.
Along the way during the start-up process, most entrepreneurs find themselves making up half of what they do up as they go along.
There is no time to sit down and truly plan out every important aspect of how the business will unfold - despite what all of those "start your own business" guides say to do.
Rather, the process is a bit more like spinning multiple plates at once and hoping none of them break.
In terms of getting paid by their clients, many small business owners start out by only accepting cash or checks as forms of payment.
However, one day the light bulb goes on and the owner realizes that the ability to accept credit cards would expand their revenue opportunities.
After all, why not make it as easy as possible to get lots of people to pay you money for your goods and services? That is where credit cards come in.
Sure, accepting credit transactions means having to pay certain fees to the merchant account providers and the payment gateway service.
But, NOT accepting cards can mean turning away a lot of otherwise-paying customers.
And, that would be a shame.
If you would like to know how to accept credit cards as a small business, here are 5 tips for getting yourself set up properly: 1.
Begin with the end in mind: To get yourself set up to accept credit cards as a small business, it is important to begin with the end in mind.
That means taking the time to think through exactly how - and how frequently - you will be accepting cards.
What is your ideal situation and how will you be interfacing with customers as you accept their cards? 2.
Decide how you will be physically handling (or not handling) cards: For example, will you be physically taking cards and swiping them? If so, you will need a standard or a mobile (wireless) terminal.
However, if you plan to mainly process clients' payments online, then a virtual terminal operated via your computer or phone but using no special terminal equipment might do just fine for you.
3.
Compare at least 5 merchant account service providers: Be sure to shop around with at least 5 different merchant account service providers.
Each one will offer different terms of service.
4.
Make sure you find out the discount rate: The discount rate is a percentage you, as the merchant, have to pay each time one of your client pays you via credit card.
This amount gets paid to your merchant account service provider, usually in the range of 2% to 3.
5%.
5.
Look for any monthly minimum fees: Also, some merchant account providers and/or payment gateway providers will charge you a monthly minimum fee if you do not run at least a certain amount of money in charges each month.
Ask about each providers' fee structure to make sure you know what you are agreeing to.
Shopping carefully and following these 5 tips will help you get set up to accept credit cards as a small business.
They bootstrap themselves into a position whereby they can at least meet their ongoing expenses - while maybe setting a little bit of money aside for themselves when they can.
Along the way during the start-up process, most entrepreneurs find themselves making up half of what they do up as they go along.
There is no time to sit down and truly plan out every important aspect of how the business will unfold - despite what all of those "start your own business" guides say to do.
Rather, the process is a bit more like spinning multiple plates at once and hoping none of them break.
In terms of getting paid by their clients, many small business owners start out by only accepting cash or checks as forms of payment.
However, one day the light bulb goes on and the owner realizes that the ability to accept credit cards would expand their revenue opportunities.
After all, why not make it as easy as possible to get lots of people to pay you money for your goods and services? That is where credit cards come in.
Sure, accepting credit transactions means having to pay certain fees to the merchant account providers and the payment gateway service.
But, NOT accepting cards can mean turning away a lot of otherwise-paying customers.
And, that would be a shame.
If you would like to know how to accept credit cards as a small business, here are 5 tips for getting yourself set up properly: 1.
Begin with the end in mind: To get yourself set up to accept credit cards as a small business, it is important to begin with the end in mind.
That means taking the time to think through exactly how - and how frequently - you will be accepting cards.
What is your ideal situation and how will you be interfacing with customers as you accept their cards? 2.
Decide how you will be physically handling (or not handling) cards: For example, will you be physically taking cards and swiping them? If so, you will need a standard or a mobile (wireless) terminal.
However, if you plan to mainly process clients' payments online, then a virtual terminal operated via your computer or phone but using no special terminal equipment might do just fine for you.
3.
Compare at least 5 merchant account service providers: Be sure to shop around with at least 5 different merchant account service providers.
Each one will offer different terms of service.
4.
Make sure you find out the discount rate: The discount rate is a percentage you, as the merchant, have to pay each time one of your client pays you via credit card.
This amount gets paid to your merchant account service provider, usually in the range of 2% to 3.
5%.
5.
Look for any monthly minimum fees: Also, some merchant account providers and/or payment gateway providers will charge you a monthly minimum fee if you do not run at least a certain amount of money in charges each month.
Ask about each providers' fee structure to make sure you know what you are agreeing to.
Shopping carefully and following these 5 tips will help you get set up to accept credit cards as a small business.
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