One of the unfortunate truths of the world we live in is that everything costs money. Whether it be the roof over your head or the food on the table, everything costs money. While it is always important to be smart with your finances, it is especially true when running a small business. The decisions you make will have a large impact on the success of your business, and in small businesses, there is often little room for error. That is why it is crucial to choose wisely when selecting your small business credit card processing. Choosing the best option for credit card processing can make a massive difference in the financial success of your small business.
In this article, we will learn more about credit card processing and take a look at some of the best credit card processing for small businesses.
What Is Credit Card Processing?
To put things simply, a credit card processor is a third party who acts as a middleman between your small business and the credit card company. The three parties involved in a credit card transaction are the consumer, the seller/small business, and the “payment processor”. The payment processor is the party who facilitates communication between the consumer’s bank and the selling party’s bank.
In a credit card transaction, whether it be in-store or e-commerce, the process begins with the consumer initiating payment. The seller or small business then accepts the payment and gathers payment information. This is the point where the credit card processor comes into play. The credit card processor then receives the information on the transaction and communicates with the consumer’s bank. Once the bank receives this communication they can verify that the consumer’s account has the necessary funds, and then send the money to the selling party’s account. And that is the basics of credit card transactions and processing.
Why Does It Matter for My Small Business?
There are several reasons why it is essential to select the right credit card processor for your small business.
- Cost – There are a number of different pricing options and fees for credit card processing based on which service you go with. And it is not a one-size fits all situation. Depending on various factors like sales, traffic, etc., certain pricing options will work better or worse for your business.
- Security – One of the most important elements of credit card processing is security. It is important to remember that it is not just your money your protecting, but also your customers. It is important to ensure both parties are secure and safe from fraud. A small business that customers don’t feel secure with is one that is destined to fail.
- Merchant & Additional Services – Depending on which processing provider you choose from they will offer merchant and other services. Merchant services refer to the various equipment used to process credit card transactions. Some services provide you with equipment, although not all. So depending on what type of processing equipment you have or would like to use can be a big factor when making your decision.
Best Credit Card Processors
proMerchant is a top option for those who would be considered a high-risk account. With high-risk accounts, it is very difficult to find credit card processors to work with. Either because the industry of your business is risky, or because of your credit score. proMerchant has a high approval rate even in the case of high-risk businesses.
Square is a great processing option for small businesses with room to grow. The processor is easily scalable and can be adjusted as needed. Some features include low fees, e-commerce app support, and point-of-sale software that grows with the business.
Chase Payment Solutions offer negotiable monthly fees for small businesses. One of the biggest advantages of using Chase Payment Solutions is that they do very quick payouts. Meaning that oftentimes you will receive payments on the same day as the transaction. This makes Chase a great option for small businesses that need sales quickly.
Merchant One offers quick and easy approval, generally within 24 hours of applying. They claim a 98% approval rate, and that makes it a great option for small businesses looking for a quick startup.
Conclusion: Best Credit Card Processing for Small Business
Selecting the right credit card processor is a huge tool for your small business. There are a number of factors to consider when deciding which processing company to go with. Business owners must consider the size of their business, fees they are willing to pay, the security of their finances, and additional merchant services provided. Every small business has its own unique needs and needs to select the credit card processing firm that best suits those needs. While the companies listed above are great options, there are many more to research and consider before making your decision.