How Should I Process Credit Card Payments
by Debi Enders
Not long ago, a small business that wanted to accept credit or debit cards had few options. Most involved a card machine, a phone line, a power source and a bank to process payments.
Today choices abound. There are mobile solutions that turn your phone into a portable cash register. Online and phone payment systems forgo “swiping” altogether. And more options are coming. All operate under the same basic premise. Their goal is to verify that a customer’s account is valid and has funds to cover the transaction. If so, the funds are transferred from a customer’s account to yours in a matter of days.
Consider:
Convenience. If you have a retail location, a traditional credit card terminal probably remains your safest, most reliable option. But an on-the-go business – think electricians and food truck operators – may benefit from a mobile payment solution. If you download an app to your phone and connect it to a card reader, mobile services enable you to accept card payments wherever you go.
Frequency of use. An organization that takes only a few credit card payments a month may benefit from a different solution than one that processes dozens of transactions a day. It pays to review past credit card transactions with your banker or other provider and find the solution or solutions that make the most sense for your usage patterns.
Security and support. All card security systems are not created equal. Banks invest heavily in encryption and other security measures to minimize credit card fraud. Most also offer local support should issues arise. Newer, non-bank-based startups do not necessarily offer the same level of security or support. Be sure to find out.
The bottom line: You work hard to make a sale. Choose payment solutions that make it safe, convenient and easy to be paid.
Debi Enders (debi.enders@commercebank.com) is vice president, small business banking at Commerce Bank.