If small business is the engine that makes the economy run, then credit cards are the fuel that keeps that engine moving. But setting up a business to accept credit cards from its customers isn’t as simple as merely making the decision to accept them. Anyone thinking of making the change—or of starting a new business—will benefit from an entrepreneur’s guide to accepting credit cards.

First of all, a business owner should look into establishing a merchant services account. Such an account will often provide the business man or woman with all the information and support they need to get going on their journey to accepting credit cards. And a truly reliable merchant services account provider such as North American Bancard will be there from that first information-gathering step through setting up the account to supporting it as it goes along.

Second, a merchant services account can be tailored for the needs of specific types of businesses. After all, a grocery store in mid-town Manhattan will have different needs from a convenience store in a small West Texas town. A retail dress shop will require different services than a restaurant might need. Real-time approvals, loyalty programs, gift cards, customized reporting…there are a number of options available. That is why it is important for an entrepreneur to discuss the specific needs of the business with the merchant services provider. A provider such as North American Bancard has experts on every type of business available to answer any questions an entrepreneur might have related to his or her specific industry.

The third concern might be what brands of credit cards an entrepreneur wishes to accept from customers. The more brands a business accepts, the more customers that business will attract. Studies show that customers will often choose what shops, restaurants or other business to patronize based on what types of credit cards such firms accept. That means that not being able to process a specific credit card brand can result in lost sales. After all, customers can be as loyal to their credit card brands as they are to the shops and restaurants they patronize. A merchant services provider that can handle any brand of credit card is the one that a smart entrepreneur will seek out.

A fourth consideration is what type of equipment is required to process credit cards. Cash registers, scanners, printers, and communications equipment should make handling customer credit card information simple and smooth. State of the art equipment will also ensure that a customer’s credit card information is secure. NAB is one of the merchant services providers that offer that state of the art equipment, as well as the supplies and services that might be required to keep that equipment running in tip-top shape.

Fifth but far from least are the monetary considerations that are involved in credit card processing. There are fees—monthly, weekly, daily—that will be incurred by the business, and they can add up quickly. A provider such as NAB will offer the business entrepreneur the lowest fees possible, with easy payment options. In many cases, those fees can be processed painlessly and efficiently as simple deductions from each customer’s credit card transaction.

A sixth item that the entrepreneur should keep in mind is how his or her business will handle sales. Is it a store front business on Main Street or is it strictly an online establishment? With the right merchant account, the business entrepreneur will receive the perfect software solution for his or her sales needs. A toy store or restaurant might prefer to have the retail staff gather information from customers while a web-based business will require the customer to enter all the information necessary to complete the sale. NAB is one of the merchant services providers that can design the perfect programming software for either type of business…or for businesses that work both ways.

Finally, an entrepreneur might have special requirements to draw in and maintain customers for his or her business. Gift cards and loyalty programs are just a couple of the unique requirements that can be designed by one of today’s merchant services providers such as NAB. Credit card purchases are often higher than cash purchases, especially when paired with gift or loyalty programs. Special sales, customized customer contact programs…because such programs bring in more business—and even increase individual customer purchases—they can be a big boost to the bottom line of any business.

From cutting-edge products and services for customers to customized solutions for the entrepreneur, credit card processing can be the key to the success of any business new or old. Entrepreneurs—those just starting out as well as existing business owners—will find the answers to their needs at a firm that specializes in credit card processing.

The credit card was one of the most popular inventions of the twentieth century. There are at least 600 million of them in circulation in the United States, according to industry statistics. The other type of electronic payment, the debit card, is not far behind with 397 million cards. Taken together, there are nearly one billion credit and debit cards in the wallets and purses of American consumers. And they are using them! Tracking the spending habits of the American shopper is a full-time profession for some statisticians.

What can they tell us?

First and most importantly, electronic payments have replaced cash as the most popular payment method. In fact, a significant portion of shoppers don’t even carry paper money. According to some studies, that number may be as high as one in eight. What does this mean for merchants?

Plastic is fantastic!

The average American shopper has four credit cards, one debit card, and less than 50 dollars in his wallet. In other words, he is far more likely to pay electronically if he is making a large purchase. Studies confirm that the average credit card sale is twenty dollars more than the average cash sale. At the end of the day, few businesses are so special that they can afford to remain cash-only in the modern economy.

Merchant Services Accounts

Every company that accepts credit/debit cards must have a valid merchant services account. Offered by banks and other authorized financial institutions, these providers complete a number of vital services each time a card is swiped. First, they confirm that the account is valid; second, they send an electronic bill to the cardholder’s bank; and third, they deposit the funds, minus a series of service fees, in the merchant’s bank account.

Types of Accounts

There are three popular ways of accepting credit card payments. Service accounts let sellers offer their goods and services in a store, in the field, or on the internet. Let us take a moment to review each account individually.

Traditional

The safest, cheapest, and most popular way to process plastic is to do it in person at a store. Point of sale terminals (POS), also known as checkout stations, can be found in most retail establishments. Because this type of credit card processing happenes in person, the transaction fees are typically much lower than they are for online sellers. Most businesses that have these machines installed report an increase in average monthly sales right away.

Who needs them?

Any business owner who has a regular brick and mortar store and wants to offer his shoppers superior service at the register.

Mobile

With the aid of the smartphone, it is now possible to process credit/debit card payments on the road. A plug-in card reader and the right software is all you need to turn your phone into a portable credit card machine. Best of all, because payments are accepted in the flesh, service charges are relatively low. Who needs them? Any merchant that accepts payments on the go. This includes salesmen, landscapers, handymen, electricians, plumbers, carpenters, street vendors, and many, many others.

Online

Over ninety percent of online orders are made with a credit or debit card. Most merchants simply could not function if they were unable to process electronic payments. But because payments are not accepted in person, the fees associated with internet accounts are often higher than they are for traditional or mobile accounts. Of particular concern is a fee or fine that is known as a chargeback. A chargeback is assessed when a customer disputes a particular purchase. His credit card company is then obligated to ask for a refund from the merchant service provider. Since it is often cheaper to give a refund than it is to launch an investigation, online chargebacks are generally granted. And all of the fees associated with the process are passed along to the merchant, in addition to a sizable fine.

Who needs them?

Any merchant that sells anything on a website on the internet. Selling without a merchant account is not only unprofessional, it is dangerous. In fact, most customers won’t look twice at an online seller that does not have a valid account. Merchant services accounts are the fastest, safest, and most affordable way to accept debit and credit card payments.

In today’s society businesses that do not accept credit or debit card payments are at a distinct disadvantage to those that do. While paying by cash is popular among many customers, credit cards offer unbeatable convenience because many people don’t like to carry large amounts of cash around when they shop. With credit cards, the old excuse of not having enough liquid cash for a purchase doesn’t fly. Credit cards allow customers the freedom to spend at will and merchants can benefit from customers who do so freely, often times on impulse purchases. By not being able to accept credit cards, business owners face the prospect of losing customers to the merchants who do, and are luring customers away by baiting them with the fresh scent of plastic. This not only limits your growth as a business but puts you at a distinct disadvantage to your competitors.

While brick and mortar stores might be able to survive this tough economy with a “cash only” policy, online only stores that don’t accept credit cards are destined to fail. Let’s face it, folks, gone are the days of ordering from the Sears Roebuck catalog where you dial up your order and pay cash on delivery or just send a check. People shop on the internet for great deals and the convenience of being able to do it at any time of the day or night. Often, online purchases are also impulse buys that won’t be quite as impulsive if you have to grab your checkbook, write a check and snail mail it. These days it is all about instant gratification and paying by credit card expedites the sale and arrival of your purchase. People want to pick, click to pay and have their good shipped without delay. For this reason, an internet store simply cannot rely on people mailing payment – especially if your store is only online without a brick and mortar presence. It will make your business look untrustworthy and unprofessional, not to mention archaic. The bottom line is, if your online business does not accept credit cards, people will go elsewhere for the same merchandise leaving you in the dust.

Since accepting credit cards is one of the keys to a successful online store, setting up your site to process credit cards is one of your main priorities as a business owner. The first step on this road is to establish a secure server. Next, you must set up an Internet Merchant account with a merchant service provider so that you can accept payments. An Internet Merchant Account allows customers’ cards to be processed without them being physically present for swiping as they would be in a point-of-sale transaction. This is done by setting up a virtual shopping cart where customers can fill in their own credit card and billing information upon ordering. The shopping cart feature also allows you to store customers’ order history and calculate costs. The information from your store’s shopping cart then gets transmitted in real time directly to the payment processor or merchant bank via a payment gateway to deliver the credit card information to be verified. Payment gateways use encrypted, secure connections over a web server to transmit data; ensuring customers’ information is kept private and safe. An important thing to note about shopping carts is that in order to process credit cards in real-time, you must be sure your cart can work with a real-time gateway.

If your shopping cart cannot work with real-time payment gateway processing you can instead opt to enter customer’s payment information manually using a card terminal or card processing software. Your cart still works the same in that customers supply their info, it just does not directly get submitted for verification. Instead, it comes to you and you must manually submit it.  Though it may seem a bit old fashioned, using a credit card terminal with an Internet merchant account is not uncommon. In the end, it makes no difference if the transaction is processed in real time or keyed in later; it is a matter of what suits your business best. In the end, all that matter is that the sale is completed.

Though some online retailers may complain that their fees for an Internet merchant account are higher that those for retail merchant accounts because of the non-physical nature of the transaction, the fact is, you cannot have a successful online store without accepting credit cards. Selling online is appealing for its convenience and accessibility. If people can’t click to order and pay on your site it completely defeats the purpose of shopping online in the first place. Do your business a favor and set up an internet merchant account today.  It is the most important thing you can do to help your online store succeed.

When people think of credit card fraud, more often than not they think of how it affects an individual rather than a business. Someone gets their wallet stolen and the thief makes off with their credit cards, charging like a bull that sees red. But while the individual must go through the hassle of filing a claim with their Card Company and fight to have their credit cleared, a business also suffers repercussions when fraud takes place. Often, credit card companies try to put the onus on businesses when fraud takes place by trying to prove that it occurred because of some carelessness when processing the charge. If the credit card company can successfully prove that the business was at fault then they can exempt themselves from paying for the charges

The best way to prevent this from happening at your business is to be diligent about careful card processing and to be watchful over your customers and their purchasing patterns. Credit card processing companies also help you out by watching for unusual patterns of sales at your business. For instance, if most of your customers pay in cash and a credit card company notices a large spike in card transactions, this may raise a red flag to alert you to make sure everything is legitimate. Though it may seem a little like Big Brother is lurking over your shoulder, if something fishy is indeed going on, you’ll be thankful for the watchful eye.

Though monitoring by credit card processing companies is helpful, as a business owner you do need to be proactive and take steps of your own to prevent fraud from happening. An easy no-brainer way to do this is by keeping the “address verification” feature activated on your card processing machine. By verifying addresses, the potential for fraud is greatly reduced.

Another proactive step you can take to avoid fraud is to verify that the person using the card is actually the card owner. When a customer steps up to the counter and opts to pay by credit card you can’t automatically just assume that they are on the up and up. Yes, we all like to think the world is made up of good, honest people, but the truth is, some aren’t. The first thing you need to do when they present their plastic is to ask for ID. No ID, then no credit. ID doesn’t match? Pay by cash. Very simple. Yes, this may lead to some sales not being completed, but one lost sale is priceless compared to having to pay the $3000 on a flat screen TV when you find out the customer scammed you and the credit card company won’t pay because it is your fault. Sometime you need tough love to survive in business!

While we’re in the subject of tough love, another important step in preventing credit card fraud at your business is one that is often neglected. There is a reason credit card companies make card holders sign the backs of their cards. It is for clerks to check that that signature matches the one on the signed receipt. Often people don’t even sign the backs of their cards until some savvy clerk remembers to check it when the transaction is complete. Making sure the two signatures match is a very simple and effective way to weed out a dishonest customer. Forging signatures is not an easy task and most crooks attempting credit card fraud are not sitting there trying to perfect the signature of the person whose card they just ripped off. They want to use the card before the victim finds out and reports it stolen. A savvy store clerk can nip fraud in the bud just by making sure the John Hancock’s are the same.

The last key to preventing credit card fraud at your business is by making sure you hire staff that is competent and diligent about their jobs. Sales clerks need to be adequately trained in card processing so they don’t get sloppy about checking identification and signatures when they accept credit cards. They also need to be able to properly work the processing machine and how to safely handle people’s plastic. Emphasizing fraud prevention should be a key element to all training procedures to avoid problems that can cost a fortune to solve.

Preventing credit card fraud from happening at your business can save you a lot of time, hassle and money in the long run. The key is to diligently and conscientiously practice safe card handling. While most folks only sympathize with individuals who are plagued by credit card fraud, small business owners can also suffer when it happens at their expense. While individual victims don’t end up having to pay for fraudulent charges out of their pockets, credit card companies are looking for any excuse not to pay the charges either. If a card company finds that fraud occurred at your business because you were not careful with processing, you will be left footing the bill.

Businesses have been processing credit card transactions since the 1950s. Diners Club was the first independent company to offer charge cards for entertainment and travel. American Express came along a few years later and helped create a worldwide credit card network. Like any new technology developed for commercial use, merchants were apprehensive at first. They did not want to purchase or rent the expensive equipment that was needed to process each transaction. Most modern businesses now own a point of sale (POS) terminal. What happened?

New technologies made it faster and easier for companies to process plastic. Not to mention the fact that electronic payment options grew ever more popular. Cash has been king for most of the country’s history. It was used in the early colonies long before there was a place called America.  But in 2003, plastic (credit and debit cards) replaced paper (cash and personal checks) as the most popular payment method in the United States. Only about thirty percent of retail transactions are now completed with paper money.

Not surprisingly, cash-only businesses have gone the way of the dodo. Even companies that deal in small denominations typically accept credit card payments.  Some use old manual imprinters, but most rely on new electronic models. What is the difference?

Also known as “knuckle busters,” manual imprinters are still used by merchants who deal mostly in cash. As the name suggests, the device works by actually making an imprint or copy of the customer’s credit or debit card. The numbers and the expiration date must also be manually recorded.  The process is slow but effective, which is why some merchants still use it. But the device is rarely used by businesses that rely on high-volume sales.

A gas station or a convenience store simply could not operate if their employees had to take the time to manually input numbers and make an imprint of each customer’s credit or debit card. Lines at the pump or in the store would be out the door or on the street.  Modern companies need modern equipment, and manual imprinters are a relic of the past. They are comfortable and dependable, but much too slow to use in a contemporary business setting.

Most retail merchants own or rent a credit card terminal (POS) system of some kind. These systems are so easy to use that they rarely require a store employee to operate them. If you have ever gone through the self-checkout line at your local supermarket, you have used a POS system. These machines record the data stored on the magnetic stripe of your credit or debit card and either approve or deny your transaction in seconds. If the purchase goes through, you will receive a sales receipt on the spot.

There are two simple reasons why POS terminals are superior to antiquated manual imprinters. As we mentioned, they are much, much faster. The time it takes the average cashier or even an inexperienced customer to operate a POS terminal can be measured in seconds. But a manual imprinter can take minutes to process a single transaction. That might seem appropriate, even quaint at a small antique shop that receives four visitors a day, but not at modern retail establishment.

Another reason why every business should own a POS system is to protect their customers from identity theft and fraud. Manual imprinters copy a customer’s card, and if that imprint falls into the wrong hands, the thief can buy whatever he wants until he runs over the credit limit or is caught.  He doesn’t need the actual card. He can simply use the information on the imprint slip to buy items online.

By comparison, POS terminals issue their customers printed receipts that do not include any sensitive financial information. Even if a shopper loses his receipt, there is no danger, since they only show the last four numbers of the credit or debit card that was used. Most modern POS terminals offer real-time validation and credit card processing, which completes each transaction in seconds, no matter who is using the machine. Transaction fees are based on sales volume and the risk of the industry the merchant competes in.

Point of sale terminals can help any business increase the speed and security of the payments they process.

Credit cards have been in existence since 1946 when Brooklyn banker John Biggins introduced the “Charg-It” bank card. When customers used this card buy merchandise, the bill would be forwarded to Biggins’ bank, which in turn would pay the merchant. The customer would then get billed by the bank and pay them back. Since this time, credit cards have evolved greatly but even though we are well into the 21^st century, how they are processed uses technology that is a few decades behind. The reason for this is because credit card processing technology is based on security and reliability. Keeping cardholders’ information safe is a huge priority in the credit card business, so while technology has advanced exponentially, processing has stuck to methods that are a bit dated but have stood the text of time.

Early on in credit card history transactions were processed by manual imprinters where the embossed cards would be run through a carbon copy machine and merchants would then mail their slips into their bank. This process was quite time consuming, however, and instant credit approval did not exist in these early days until merchants were able to call the transactions into their banks for electronic authorizations. Though somewhat archaic by today’s standards, manual imprinters are still used today as a backup processing method when electronic technology is unavailable.

The next step forward in credit card processing took place in 1979 – a monumental year in credit card history for several reasons. 1979 was when Visa introduced a bulky electronic data capturing point of sale terminal. This terminal changed the landscape of the credit card industry, allowing merchants to process cards much more quickly that ever before. 1979 also was the year MasterCharge became MasterCard and credit cards began featuring a magnetic information stripe.

Two years later, in 1981, a small Hawaiian electronics company named VeriFone made its point of sale terminal debut with a 200 unit order from Tymshare.  In 1983 VeriFone introduced their ZON terminal which is widely considered the first modern point of sale terminal, setting the standard for all credit card terminals going forward. Still used even today, the ZON terminal paved the way for VeriFone’s later Tranz and Omni models, leading the company to become the largest manufacturer of processing terminals worldwide.

In 1982 VeriFone gained a competitor in the world of credit card processing as Hypercom rose to prominence with their own line of reliable processing terminals both in printer and printer-less form. Their T7P terminal has been one of the best selling models in history and the updated T7Plus is also competitive among sales of comparable terminals. Hypercom also makes terminals that are suited for large customer processing applications such as their Optimum series. One such model from this line that is widely used at larger scale businesses is the Optimum T4100. Currently, Hypercom is the number 2 market leader in credit card processing terminals.

A decade later VeriFone and Hypercom got some competition when Lipman Electronics Engineering, Ltd., was established in Israel in 1994. Now established with offices worldwide, Lipman knew when they got started that they would have to target a niche untapped by these two powerhouses and thus set out to establish themselves by offering a different product. They did this by marketing wireless processing terminals as opposed to the wired versions offered by VeriFone and Hypercom. Lipman now holds a solid 95% share in the wireless terminal industry. Best known for their Nurit line, their first in this series was the Nurit 2070. Currently the Lipman models most used are the Nurit 8100 and the 8000.

The reasons behind Lipman’s success are twofold. First, they recognized the need to offer a product that differed from what their competitors were offering and did so with their wireless terminals. Secondly, Lipman was quick to adapt to new technologies such as wireless. By taking this risk they managed to establish themselves and run with the big dogs of the credit card processing industry.

In today’s era most businesses accept credit cards and it helps in the expansion of the business in more varied ways. It increases their sales and potential sales figures as credit card payments are traditionally get now pay later.  It is a common phenomenon seen in the individuals that the purchase is often more when bought via a credit card. This naturally enhances the average sale per customer. A proper and a reliable credit card processing service helps the business to increase the sales by making it easier to accept all sorts of the payments. A proper credit card processing service provides the following benefits:-

•           With a proper credit card processing service one can accept almost all sorts of the payment and can be verified from all the major electronic checks and traditional checks methods.

•           The payment could be accepted anywhere. Having a proper Merchant account and a good credit card processing service the acceptance of the payment is secured. Most of these transactions are processed at Kiosk or at a retail site at some remote location wherever the internet access is there and a fast intimation arrives to the merchant.

•           With the advent of merchant accounts and credit card processing, the threat of frauds and other similar issues have risen from nowhere. A proper merchant account services would provide you a secured service with encryption technology so that the customer would feel secure to divulge their credit card details. Most of these services provide SSL certifications which is a highly secured division. This is done to protect against any fraudulent use of the credit card.

Things to look out for Credit card processing services:-

With so many credit card solution providers flocking the market, it is very tough to decide on the right solution. Every other service provider has its own sets of claims and everyone says they are different from the others. Here are few points which would throw light on few salient features of such service providers which is recommended to look before you go ahead:-

•           The approval rating of the service provider should be more. This usually refers to the rate of the approval, the processing fee and the total fee to apply for the credit card. A proper service should have the good rate of approval with minimal or no processing fee.

•           The lower is the monthly cost; the lesser is the overhead costs. A proper credit card processing company would have a lesser monthly fee with a very transparent communication process about all the costs whether it is hidden or known to the owner.

•           To startup a merchant account and to install a payment gateway, the credit card processing companies should not charge exorbitant prices. These methods would simple deter the client from choosing the company.

•           The account set-up time and the processing should be rather quick and a good credit card processing company sets up the account in a short interval of time with a minimal service charge.

•           Customer service is one of the most important add-ons in credit card processing since the 24/7 service will enable the client to receive help at anytime. Apart from telephone service this also includes any instant messaging or email interactions.

Credit Card Processing working method:-

The safest way to process credit cards is with the help of a merchant services provider.  These providers offer secure systems and evidence of this lies with North American Bancards high rating on the better business bureau’s website.

Have you recently opened an online storefront? Decided to take your brick and mortar store to the upper echelons of the internet in hopes of gaining a greater international customer base? Well, you’re in luck, because chances are, you’ve done the right thing. While the economy over all is suffering, internet business is booming. Many people prefer to shop online these days, thanks to the convenience and ease of doing so from the comfort of their own home. While stores close, the internet is always open. This means people with extremely busy days who don’t have time to get to the grocery store, or to their favorite clothing boutique to try on a new little black dress, can still get what they need, and in a timely manner. The internet allows for people to order anything, at any time, and to get it delivered to their doorstep. This convenience appeals to today’s modern working man and woman, and hence, it’s smart for businesses to get their foot in the door at an online storefront.

So, you’ve got your new internet business set up. But how are do you go about accepting payments? Many businesses start out with PayPal, but PayPal is an outdated system that makes your company look clunky and anything but modern. The way to get a modern system is to hire a merchant service provider to get things organize for you. Merchant services vary by account provider, so you’ll need to budget some time for your search in order to find the one who has the best choices for your business. A few things to consider while on the hunt for your new merchant service provider: fees and costs, experience and customer service, and availability of the provider for troubleshooting. Once you’ve set up your merchant service account, your online business will be ready to accepting credit cards, easily and efficiently.

Accepting credit cards as an internet business requires that you, as the merchant, have a checking account at a bank, as well as a third party online payment processor and a processing bank (this may or may not be the same bank that holds your checking account) that approves and regulates your account. How it works: the customer will input their credit card number into a secure web based form, or they will enter it through shopping cart software, depending on the nature of your internet business. From there, the information will be encrypted by a third party processor, who will send the information to the customer’s account at their bank, as well as to the merchant accounts bank. If the payment is approved by the customer’s bank, the money will be deposited into your account.

Because credit card purchases are the most common way for people to pay for goods and services on the internet, it’s highly recommended for any and all internet businesses to set themselves up to accept credit card payments. Luckily for business owners, accepting credit cards, as seen above, is as easy as 1, 2, 3.