Learn the secrets to starting a business: Click Here to Get Started
Businesses need money! That's most likely the reason you are starting a business in the first place. Well one of the main sources of payment today is credit cards. Thus, it's important to understand how to accept them. Card payments for small businesses can seem like a tricky thing, but it doesn't have to be. In this article I'm going to go over the easiest and the best way to process credit card payments for small businesses.
Why is Accepting Credit Card Payments Important?
According to statista.com (very helpful website for finding basic statistics) 38% of all payment methods used are credit cards! Not to mention 29% are debit cards... In light of this I think it's pretty easy to say for your business to be successful you need to be accepting card payments.
Decide How to Accept Payments
Different types of business models will require different types of payments. There are three major payment types:
- Mobile payments
- These include any sort of payment made with a mobile device
- Are becoming increasingly more popular due to their security and convenience
- In person payments
- These include any sort of payment made in person like swiping a credit card
- This is the most common payment method at an in person shop
- Online payments
- This is only needed if your business sells online.
- Adding an ecommerce section to your business can draw in tons more business!
Given these three methods, the best plan of action is to find a service that can be used for all three. In the event that you business model ever changes, you won't have to worry about changing how you process payments.
Best Ways to Accept Credit Cards For Small Business
In light of the insights above below are the simplest and most effective way to begin accepting credit cards for your small business.
This is probably the most common method you will see for accepting credit card payments for small businesses, and for good reason. Not only can square handle in-person payments, but online payments as well. Not to mention they provide low transaction fees. In-person payments have a fee of 2.5% + $0.10 for each transaction where a card is present, and 3.5% + $0.15 for mobile payments. Likewise, there is a fee of 2.9% + $0.30 per transaction for online payments. Check out Square here
One of the key benefits of square is it is extremely easy to setup for in-person transactions and online transactions. Equally important is the fact that they are trendy, and trendy things are great for growing and scaling your business. Also, you can purchase all the hardware needed to perform in-person payments at low cost.
Paypal is more universal than the other two options on this list. It is important to note that PayPal works with various types of card readers. Also, payments can be made by scanning a QR code. This is very convenient for a lot of customers. Similarly to square, PayPal also has their own fees. PayPal will charge 1.9% + $0.10 per each QR code transaction, 2.59% + $0.49 per each online card transaction, 2.29% + $0.09 per each in-person card payment, and 3.49% + $0.49 for each Digital PayPal payment.
It's important to note that PayPal is one of the top online payment processors, and has been around for a while. PayPal makes it very easy to setup and use their system. Check out PayPal here
Stripe is more known for their online payment processing, but can also handle in-person payment processing. One of the nice things about Stripe is simply how many currencies they accept. To date Stripe accepts more than 135 currencies. Not to mention setting up recurring billing (subscription payments) is a breeze with Stripe. Like the other two, Stripe has their own fees.
Catch you on the flip,
P.S. If you are wanting to, or have ever wanted to start a business, but are lost on where to start, click here and check this out