Trying to figure out how to accept credit cards should not be as complicated as it seems. It really is as simple as finding the most convenient and least expensive route between your client’s credit card and your bank account.
At its core, it is really just a two-step process…
- First, figure out how you want to maintain a business relationship with your customer: Personally – through POS system, the traditional credit card swipe or mobile device – or remotely, via the Internet or phone. Simple, right?
- Once you decide that, you can determine whether you need a bank account, essentially a financial intermediary, which approves the transaction and makes the money in your bank account or whether your method of accepting credit cards connect directly to your bank account without the need for a bank
If you already know, what you need and just want to see our recommendations for the best services for high risk credit card processing. If you’re still not quite sure what method of accepting credit cards is best for you, you must first understand how each method works. Here are four main ways to accept credit cards. We will fill you more carefully at every detail down below, but let’s start simple.
4 ways to accept credit cards
System point of sale (POS)
- Full control of the terminal, which may include credit card swiper, NFC-reader, touch screen, barcode scanner, cash register, printer and other equipment.
- Typically requires a bank account.
- Best for a company with a physical location that wants to connect multiple locations or cash registers to each other and / or to other business systems, such as accounting or inventory.
Mobile credit card processors
- A protective cap or an application that allows you to accept credit cards anywhere using a smartphone or tablet.
- Usually, it requires a device for reading credit cards, which is peculiar to your phone. Usually, it does not require a bank account.
- The best way for a business that sells a variety of places wants to process transactions anywhere in the store or making only a few trades per day in its physical locations.
Credit Card Terminal
- Part of the hardware used to swipe credit cards in person or in some cases, manually enter the credit card number from an online or phone orders.
- It requires a bank account and is usually provided by the high risk payment services provider as part of their service.
- The best way for a business who does not want his credit card processing system to make almost accepts payments.
- E-commerce solutions, software or a third-party shopping trolley market – such as eBay, Amazon – which allows network companies to accept payments on your website, blog or online store.
- Most e-commerce sites, taken by a third party, do not require a bank account. Autonomous e-commerce sites that use the software shopping cart, you may need a bank account.
- Best for companies who spend a lot of business transactions online.
Now that you have the basics, you could be ready to make some decisions. If so, check out our picks for the best credit card processors here and our best choices for POS systems.