Credit card processing is essential for modern businesses. It allows you to accept payments from customers using credit or debit cards. Whether you run a brick-and-mortar store, an online shop, or both, having a reliable payment processing system is crucial. In this blog post, we’ll explore the ins and outs of credit card payment processing for small businesses.
What Is Credit Card Processing?
Credit card processing, also known as payment processing, involves the secure transfer of funds from a customer’s credit card to your business account. Here’s how it works:
- Initiation: The customer provides their credit card information during a transaction.
- Data Transmission: Your point-of-sale (POS) system or online payment gateway captures the transaction details and securely sends them to the credit card processor.
- Authorization Request: The processor checks if the customer has sufficient funds and requests authorization from the issuing bank.
- Approval or Decline: The bank approves or declines the transaction.
- Authorization Response: The processor informs you whether the payment is approved.
- Settlement: The funds are settled between the bank, processor, and your business.
- Funds Transfer: The money is transferred to your business account.
- Cardholder Billing: The customer receives a statement from their bank.
Choosing the Right Payment Processor
Consider the following when selecting a credit card processing company:
- Industry Needs: Look for providers that cater to your specific industry.
- Sales Volume: Choose a plan that aligns with your monthly sales volume.
- Online vs. In-Person Transactions: Ensure the provider supports both.
- Customer Service: Accessible customer support is crucial.
- POS Systems: Some providers offer their own hardware for seamless integration.
Our Top Picks
Here are our recommended credit card processing companies for small businesses:
- Nuviopay: Ideal for all-in-one payment services, with competitive rates for both in-person and online transactions.
- Shopify Payments: Perfect for e-commerce users, integrating seamlessly with Shopify stores.
- Helcim: Offers interchange-plus pricing, great for businesses with international transactions.
