The Credit Goes to You When You Get a Merchant Account

All small business want that added advantage that sets them apart from the competition.

Whether it is the best products and customer service, years of experience that no one else can offer or using social media to promote their brand better than everyone else, some small business owners stand out above the crowd.

So, what about the ones that do not offer credit cards as an option for customer payment? Are they setting themselves up for potential failure? Could the competition use this against them in order to secure more customers?

A number of studies indicate that the average size of credit cards comes in at up to three times greater than cash and check orders. Quite simply, consumers tend to make larger purchases when they have a credit card on hand as opposed to cash.

If your small business has yet to set up a merchant account, rest assured that it is not as hard as you may think.

In the event you want to offer this option to customers, the steps include:

1. Search for a provider - The first step is doing a search for a member company that has a processing relationship with card businesses like Mastercard, Visa, Discover and others. You will want to determine which cards are best for your business, meaning you may only want 2 or 3 or half a dozen. When searching for a merchant account provider, make sure you get the history of the company, their financial stability information, customer service information, and some referrals;

2. Determine forms of payment - Another important decision you will need to make is how you want to receive payments. Will you just allow payments in person or will you also offer the option for customers doing online shopping with you? Are you going to use a virtual terminal? Will mobile payments to you on your website be an option? Make sure you determine your needs before settling on a provider;

3.  Review provider rules - Like anything you sign up for, make sure you read the fine print. Look at the fee structure to determine how you will be charged. One item is a first, per-item charge, which is the flat rate assessed for each credit card payment being processed. The second is a percentage cost centered around the full figure of each transaction. You also want to look into fees such as those for monthly minimums, cancellation fees, setup charges, customer service fees and statement expenses among others;

4. Prepare your credit history and application - Once you have some providers you may be interested in doing business with, make sure you have all your information ready to go. In the event your credit history is suspect, make sure you can easily explain why that is the case, given the fact you will undergo a credit check.. Also be prepared to fill out paperwork, and it never hurts to have some references speak in a positive light on you and your business dealings;

5. Once approval is set - At the time your merchant account is approved, you are then ready to take on credit card payments. In some instances, you will simply enter the customer’s payment details and click a collect payment button to process the funds. If the customer is making the payment in person, simply have a payment terminal on hand for the individual to swipe their card through. Lastly, you could have the option of taking payments via a third-party payment processing service.

The bottom line is accepting customer credit cards allows your small business to increase your sales, provide consumers with a quicker checkout, and makes it more convenient.

In the end, take credit for setting up a merchant account and seeing your sales grow.