11 Helpful Credit Card Processing Tips for Small Businesses

Making certain your business has the capacity to take credit cards as payment is about far more than simple customer service. Today’s consumers do not just prefer to pay for products and services using their credit cards. They anticipate to be in a position to do this pretty much everywhere they go if that is the corner bakery, their favorite site, or their regional gas station.

Being able to compete in today’s market is particularly critical for small businesses. A business of any size that does not or can not accept credit cards risks losing a large part of its business to the competition. However, problems like chargebacks or fraud are naturally going to be larger concerns also. Here we will go over some need-to-know methods for small businesses that accept credit cards (or expect to be able to do so shortly ).






  • Take some time to search around for the ideal payment processor.

Before you will be able to begin accepting credit card payments you will have to open a merchant account. The procedure for applying for and getting approved for a new merchant account can be lengthy and complex. However, you do not need to make the mistake of believing one payment chip is as good as some of the others.

Selecting a payment processor is truly a lot like selecting a credit card business. Each option will come attached to its rates, fees, benefits, and disadvantages. Some will be better fits for your company than others, so take some time to shop around, compare terms, and find something that’s going to work for you.

  • Prioritize options that provide more freedom.

When you operate a small company, particularly if it’s still a new company finding its footing in the market, it’s critical to be certain that you have the freedom to make alterations as needed as much as how you do things. While having the ability to accept credit cards will work wonders when it comes to attracting and keeping clients, you do not need to end up locked into a long-term contract right off the bat.

Some merchant account providers will attempt to acquire a business owner to consent to a lengthy agreement that comes attached to hefty cancellation charges. Do not be afraid to say”no” or inquire whether exceptions can be made in relation to requirements you do not like. Oftentimes, the conditions of a certain venture are more flexible than they appear to be at first glance and it never hurts to ask.

  • Once approved, follow the rules to the letter.
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When it comes to money and credit particularly, it really pays to understand the rules backward and forward, and to follow them exactly. Even though the protocol can fluctuate from one credit card processor to another, it is always going to be there. After it is an important part of maintaining your merchant account in good standing and guarding your company from fraud.

As an example, you will want to know whether you need special permission to process purchases in which the physical card is not present (i.e. online purchases or transactions completed over the telephone ). Many payment processors require the merchant to get additional information for safety reasons like IP addresses, electronic signatures, or information from social networking profiles.

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  • Never close a transaction without legal authorization.

As touched on above, contemporary customers love nothing more than lots of choices when it comes to the way they could pay for their purchases. Because of this, it is definitely in your best interests to give an assortment of options including prepaid, debit cards, and gift cards in additional to traditional credit cards.

However, there is one important factor you don’t ever wish to become lax about. Never complete a sale and call a transaction complete without a valid consent. Otherwise there is a strong likelihood of not getting paid or running into trouble with fraud.

  • Insert credit card associated signage to your site or shop décor.

Nowadays, most of your clients will most likely take it for granted that you accept credit cards unless they have been given a reason to think differently. However, dedicated signage which makes it clear with no needing to ask certainly never hurts. In actuality, it can be excellent for company.

Place signs saying not only that you accept credit cards, but that feature the logos of the particular cards you do accept both in the front of your shop and at the checkout counter. You’re going to be particularly more likely to boost revenue through impulse purchases.

  • Make sure that your payment descriptors are clear enough.

Expensive chargebacks can happen for a variety of reasons, up to and including real fraud. But, quite a few happen because of simple mistakes which could easily be avoided with a little care and forethought. As an example, make sure that the payment descriptor attached to your transactions is crystal clear. It should include your merchant name, in addition to any other significant details related to your organization.

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Bear in mind that the typical consumer can create numerous credit card transactions over the course of one month and it is not unheard of for some to be forgotten about. Payment descriptors which aren’t readily recognized could wind up reported as fraud if they are actually completely legitimate.

  • Be sure all clients are clear in your refund policy.

When you run a small company, there is no such thing as too much clarity, particularly in regards to payments and refunds. Sooner or later, you will have a client want to return something they have bought or ask an adjustment because of damage, sale prices that took effect immediately after purchase, et cetera.

Ensure that your company not only has a very clear policy in place so far as returns or adjustments, your clients are aware of it. Display your coverage carefully at points of sale. Print it clearly on all receipts too so the customer can not overlook it or confuse your coverage with anybody else’s.

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  • Be sure all customer support issues are dealt with in a timely way.

Like returns, customer service problems are sometimes just par for the course when you run a small business. This is just as much the case with credit card-related transactions as anything else. In actuality, really good customer service can really help you make short work of a possible chargeback before it has an opportunity to cost your organization money.

Find out whether your payment processor offers alarms about pending chargebacks and activate this option whenever possible. This way you find out if a client is disputing a charge almost straight away. Not only does this help you prepare, but it provides you the chance to contact that client and see what you could do to smooth things over.

  • Learn to spot possible fraud early on.

Naturally, identity theft is sadly something in today’s society. However, despite the fact that there is not a lot you can do to prevent people from stealing credit card info that does not belong to them, you can shield your company from fraud-related chargebacks by learning how to spot potential fraud early.

Double and triple check details associated with credit card related transactions and educate your employees how to do the same. Do the billing and shipping addresses match on site purchases or telephone purchases? What about the security code on the card? If anything looks amiss, play it safe and call the card holder to be certain everything’s on the up and up. They’ll probably appreciate the fact that your company goes the extra mile to be certain their sensitive information stays secure.

  • Keep meticulous records of everything.

Every wise business owner keeps spotlessly detailed books about their business’s financial information. However, detailed records are even more significant when it comes to credit card transactions. Excellent records make things infinitely easier if you ever have to fight a chargeback at any stage in the future.

No, records will not be of much help if somebody’s stolen another individual’s credit card details. However, they will quickly nip things in the bud in the event of consumers who’ve forgotten about a legitimate buy or that may be fraudulently attempting to make the most of the chargeback system.

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  • Make it easy for people to reach out to you.

As touched on above, terrific customer service can truly move mountains when it comes to saving your organization money. Having said that, always make it a priority as far as how your organization deal with clients. Do not just make it a point to be solicitous and adapting with clients when you interact with them in person. Make it simple for them to get in contact with a rep from your company if they have queries or concerns about a purchase also.

You’ll have the chance to address concerns before they become full-blown issues or misunderstandings. Moreover, if a customer asks a refund, it is much wiser and less detrimental to just manage it yourself than have to manage a chargeback. To put it differently, terrific customer service is never a mistake or a waste of time. In actuality, it’s among the best ways to not only make your company money, but conserve cash also.

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