Why your small business can't go without credit card processing

Unless you have a safe and reliable way to receive your customer’s money after a purchase, your small business will be lost. 

Fortunately, establishing a relationship with a credit card processor will give you everything you need to get these funds in a timely fashion. Better still, this partnership will bring other numerous benefits to your enterprise.

The fundamentals of credit card processing.

There are a few simple steps involved in processing a credit card. First, the customer uses a credit card to make a purchase by swiping or tapping it, or by manually entering the numbers on a desktop or mobile device. 

The data is then sent to the payment processor, who confirms the customer’s information, and makes sure that there are sufficient funds available to proceed.

Next, the processor contacts the card network (Visa, Mastercard, etc.) At this time, they confirm that the transaction is legitimate and that it has come from the correct person. 

Once authentication has been completed, the money travels from the customer’s account into your merchant account. Once settlement is completed – usually after a few days – you have total access to all funds that remain after fees.

The benefits of connecting with a credit card processing provider.

On the surface, you need a credit card processor so that you can get paid. Both you and your customers must have assurance that the transactions and their associated data are secure. This is one area where your credit card processing company is indispensable.

However, that is just the beginning. The provider with whom you partner furnishes you with a point of sale solution (POS system) that will quickly become the command center for your entire set of operations. 

This POS, a collection of hardware (tablet or terminal equipped with card-reading capabilities, barcode scanners, and receipt printers) and payment processing software, can be vital in streamlining your business in many ways.

For one thing, your system will enable you to register and keep track of inventory at every stage of its journey. When quantities start to run low according to thresholds that you have set in the system, you can re-order in plenty of time to ensure that you and your customers never run out of desired merchandise.

Additionally, the same robust database elements that are the foundation of your inventory functions can also store valuable customer details, including contact information and additional data such as buying history and personal milestones. 

The customer relationship management tools in your POS. can utilize this data to help you create loyalty programs that reward clients for their frequent business, as well as innovative marketing campaigns that are personalized to meet the unique needs of identified segments of your shoppers.

When you wish to get a snapshot of how your store is performing, the POS. provided by your credit card processor is ready and waiting to help. Simply enter the parameters that you want to explore, and the system can quickly query its database to gather and present the details you are seeking, in a clear and actionable report that you can share with staff and investors.

Similarly, you can view the performance of your employees. To that end, your software’s employee management capabilities can inform you about each of your staff’s productivity and sales numbers. 

You can even break it down to learn in which product types a particular salesperson excels. These insights can then be used to provide additional training, or to delegate job responsibilities as effectively as possible to maximize your profits, as well as to increase employee morale.

The hardware and software provided by your credit card processor also can integrate seamlessly with other systems that you may already have in place. 

Consequently, all of your business functions, including human resources and accounting, can be integrated and readily accessible whenever you need them. This makes scenarios like tax preparation and performance evaluations seamless and accurate at all times.

Choosing the best credit card processor.

Hopefully, you are now convinced that your small business can’t do without credit card processing services. But just what features do you look for as you review the numerous options that are available to you?

Start by examining the advertised rates. Drill down into each to understand the complete fee structure. This will include monthly charges, transaction fees, and perhaps additional contractual obligations.

Next, identify which payment methods the provider will let you accept. Be sure that they will allow you to take the methods that you and your customers want. Must-haves include credit and debit cards, mobile payments, and digital wallets. You may also benefit from taking alternative types such as international currency types and recurring billing options.

The company you choose should make data security a high priority. They should be able to demonstrate their compliance with the Payment Card Industry Data Security Standard (PCI DSS) as well as any other industry-specific requirements.

Finally, choose a vendor that gives you prompt and reliable customer assistance. Should technological difficulties or other problems arise, you need to be able to access fast and knowledgeable assistance so that you can minimize downtime, and reduce any inconvenience to your staff or your customers.

If you are ready to take your small business to the next level, partnering with the right credit card processing provider is an absolute must. Devote the time to finding the best partner today today, and you will be reaping the rewards for years to come.