Credit card processing refers to the entire process of a customer using a credit card to purchase a good or service from your business. Credit card processing is a necessary part of doing business today, as more and more consumers choose to pay with plastic rather than cash.
When a customer wishes to use their credit card to make a purchase, the credit card processing company will handle the entire transaction. This includes verifying the customer’s credit card information, authorizing the transaction, and depositing the money from the transaction into your business’s bank account. This entire process is usually completed within a few seconds, although at certain periods of time, such as weekends or other off hours, the transaction may take considerably longer to complete.
Credit card processing fees vary widely depending on many factors, including the type of business you have and the service you choose. However, basic credit card processing fees typically consist of a small percentage fee or “discount rate” of the total transaction as well as a per-transaction charge. In addition to these standard fees some companies may include additional charges for items such as terminal leases and monthly minimums.
What are the benefits of accepting credit cards?
Credit card processing is more than just a way to be able to accept credit cards. There are many benefits associated with accepting credit cards, such as:
Faster transactions – Businesses that process credit and debit card transactions can process these forms of payments much more quickly than they would be able to by only accepting cash or checks.
Increased sales – In a study conducted by Visa, it was found that businesses that accept credit cards saw a 44% increase in sales volume as compared to those businesses that only accepted cash.
Improved customer service – By being able to take plastic, you are offering your customers more payment options, which can make them happier and more likely to return in the future.
Greater convenience for customers – Credit and debit cards are now the preferred payment method for many consumers, so by accepting them you are making it easier for them to do business with you.
Improved security – When credit card information is processed through a secure system, it is much less likely to be stolen or compromised than if the information was stored on your premises.
Reduced costs – Accepting credit cards can help you to reduce the amount of cash you need to keep on hand, which can save you time and money.
As you can see, there are many benefits to accepting credit cards as a form of payment. By doing so, you can improve your business’s sales and customer service, while also enjoying greater security and convenience for your customers. Contact a credit card processing company today to learn more about how you can start accepting plastic payments.