Benefits of Online Credit Card Processing for Small Business Owners

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    Transitioning from exclusive in-store transactions to online credit card processing for small businesses and startups is a tremendous accomplishment. This shift defines the moment you move up from being a local small-time shop to a fully operating eCommerce business that runs on a global scale. The only problem here is that processing such payments can be pricey.

    Apart from the transaction fees, some credit card processing service providers also charge a monthly fee for their software programs, processing platforms, and point of sale (POS) systems. Some small businesses might have doubts about the high overhead. However, note that expanding your payment options can be highly lucrative and advantageous if the process is executed correctly.

    Benefits of Having an Online Credit Card Processor

    1. More Convenient Checkout Option for Customers

    Paying with credit cards is a lot simpler, easier, and more convenient than paying with cash. This convenience is what makes them so popular. In fact, surveys show that nearly 40% of all processed transactions in 2020 consisted of credit card payments.

    2. Improved Customer Retention

    Too many entrepreneurs who run brick-and-mortar stores forgo building their own eCommerce website. After all, why bother when you already have a physical location, right? Statistics on shopping habits show that while buyers prefer in-store transactions for first-time purchases, most repeat purchases happen online. If you want to boost your customer base, build an online shop.

    3. Stimulates Impulse Buys

    Consumer research shows that people with credit cards are more likely to give in to the temptation of impulse buys. Cardholders have a higher spending capacity than those who only carry cash.

    Plus, if you sell high-cost goods—products exceeding $1,000—it would be hard to make a sale if you don't accept card payments. Not too many people walk around with thousands of dollars.

    Is your business prone to chargebacks? Processing Card has multiple resources to help high-risk clients find payment processing companies willing to provide them with an account and processor. Visit Processing Card to learn more about high-risk payment processing services.

    Frequently Asked Questions

    Which credit card processing is cheapest for SMBs?

    It's hard to say which company offers the lowest rates. Credit card processing companies have varying fees depending on their transaction rates, membership dues, and POS device rental charges.

    However, if you really want to save on money, opt for brands that have a flat-rate pricing plan, low interchange fees, a zero monthly fee, and minimal credit card processing fees. It would be great if you could score a free virtual terminal and payment gateway as well.

    How do small businesses set up credit card processing?

    Talk to a certified agent from your preferred payment processor, consult about their rates, then see if you qualify. Explore other options. After doing the market research, you should have a clearer idea of which credit card processing service provider best addresses your specific processing needs.

    What's the best credit card processor for small businesses?

    Square is arguably the best credit card processing company for SMBs. First, they have fair, predictable interchange-plus pricing plans starting at 2.9% plus $0.30 per transaction processed online. You won't even have to shell out for any monthly fee or early termination fee.

    Second, they have a multi-feature point of sale (POS) device. The Square software can help with inventory management, invoicing, and sales management.

    Third, they have an excellent customer service team. You can call on the Square company agents for anything from tech support to processing rates queries any time, any day.

    Although, bear in mind that there is no one-size-fits-all credit card reader. For example, some disadvantages of using Square are:

    • The software isn't as cost-efficient when processing low-volume orders
    • Square only works with low-risk businesses.

    If you're either of the two, consider looking for an alternative online payment processing company, such as Helcim, PayPal, Flagship Merchant Services, Shopify, Merchant One, and Quickbooks Payments.

    What is the best way for a small business to accept credit cards?

    Most large credit card processing companies refuse to work with startups. They see these businesses as risky since they don't have tenure and experience yet, especially if they're prone to chargebacks.

    A good alternative would be to opt for mobile credit card processors. You can run a mobile POS system using only your smartphone, there's no need to open a merchant account, and these platforms can accommodate most major credit card companies. Switch to a larger payment processor once your processing needs increase.

    Additional Resources

    Global eCommerce Market Growth

    If you don't have an eCommerce website yet, now's the best time to get one. Statistics show that the global eCommerce market valued at $4.28 trillion in 2020, and experts predict that it can skyrocket up to $5.4 trillion in just two years.

    Merchant services can drastically expand your operations. With a payment processor, you'll be able to accept payments via credit and debit cards globally, provide installment payment solutions on high-ticket goods/services, and streamline the purchasing process. Qualifying for the best credit card processors is something every small business owner should work toward.

    Still can't decide on the best credit card processing services to get? Processing Card has multiple guides and resources that compare the most popular and commonly used payment processors for small businesses. Visit Processing Card for more recommendations!

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