Being able to collect payment for the products and services you provide is a critical part of running any small business. In today’s world, customers expect virtually every business to accept credit cards and mobile payments. However, payment processing for small businesses isn’t always as simple as it may seem.
Many business owners either don’t know where to start or find the process to be stressful, complex, and costly. Even worse, if you’re struggling with payment processing woes, it could negatively affect your overall customer experience. The good news is, it only takes a bit of research to find the perfect payment processing solution for your small business. Follow these three simple steps and you’ll be well on your way to accepting customer payments with ease.
1. Understand Your Options
Successfully streamlining your payment processing begins with understanding your options. Beyond hard cash, there are three primary ways that small businesses accept payments. This includes basic or “traditional” terminal payments, mobile or “on the go” payments, and online payments.
Basic Terminal
The most common method of collecting credit card payments is a “terminal,” which is connected to a point-of-sale (POS) system. Virtually every business that accepts credit cards will have one of these terminals next to their cash register. These typically have a PIN pad and are set up to handle both swipe cards and EMV (Europay, MasterCard®, and Visa®) chip cards. Many of the newer terminals accept mobile payments as well.
This is almost always the best option for businesses with well-established brick-and-mortar locations that accept a significant amount of credit card transactions.
Mobile Payments
While credit card terminals are the most popular option, they can be expensive for small business owners. This is one reason why mobile or “on the go” payment processing has become so popular. Mobile payment processing is a reliable and trustworthy solution that allows you to accept payments online, in person, or anywhere else you happen to be.
To accept payments using a mobile payment solution, you’ll need three important things:
- A smartphone or tablet
- A card reader
- A mobile payment app
The payment app, also called a mobile point-of-sale (mPOS) system, allows businesses to quickly and securely accept payments. It’s as easy as downloading the app, plugging the card reader into your phone or tablet, and connecting to a WiFi network.
This is a great solution for businesses that need extra flexibility or those that do a lot of business on the go – such as selling products at trade shows, festivals, and other events.
Online Payments
If you sell products online, you’ll need an e-commerce payment solution. Online payment processing for small businesses requires the use of a virtual terminal, which will allow your customers to safely and conveniently pay for their purchases. Having an e-commerce solution allows you to reach customers beyond your local area by accepting payments through your website.
2. Choose the Right Credit Card Payment Processor
There are many different companies that offer payment processing for small businesses. With so many options available, how do you know which one is right for you?
Before you choose a processor, take the time to learn about the company’s reputation, the quality of service they provide, and the products they offer. It’s also important to understand the services your business needs and whether the company you’re considering is willing and able to provide them.
In addition, if you choose a processor that offers the latest and greatest technology, you’ll have the confidence of knowing your business will be prepared to keep up with future trends.
3. Select the Pricing Model That Works for You
When selecting your payment processor, you’ll also need to make sure you understand their pricing model. Some charge a “markup,” which may be a percentage of the purchase price or a flat rate. While this may be okay with low-volume businesses, as you grow, under this model, the cost of processing will continue to grow as well.
Another common pricing model is based on “tiered rates.” This model is unregulated and often the most expensive option for business owners.
The third model is a “subscription” or monthly membership. Under this arrangement, business owners pay a fixed monthly charge that doesn’t change based on the payments you process. This is often the most economical option for business owners.
Need Some Extra Financing? Zinch Is Here to Help!
Finding the best small business payment processing is just one step in creating a solid financial future. Having a payment processor also makes it easy to set up a cash advance. Zinch offers cash advances with flexible, hassle-free payments. Your payments are calculated as a percentage of your sales and are automatically collected from your credit card processor.
Contact us at (714) 500-6622 to learn more about your options. You could qualify for up to $250,000 in just 24 hours.
