When Should I Start Accepting Credit Card Payments

Processing fees remain the biggest hindrance against POS systems. Credit card payments are quickly overtaking fiat transactions, but business owners fear that the charges might drag their profit margins. 55% of local SMBs don’t accept card payments for this reason. However, how will SMBs know whether they’re ready to upgrade to a new payment processing system?

As a business owner, you can accept credit card payments any time you want. There are dozens of payment processors on the market — from commercial banking institutions to high-risk merchant service providers. Find one that suits your needs. List your credit status, tenure, business nature, and products sold, then see which processors would accommodate you.

Factors To Consider When Deciding To Accept Credit Card Payments

Payment processors typically assess their clients based on the following factors:

• Credit History: Processors often prefer business owners with impressive credit scores and reports.
• Chargeback Rates: Businesses with high chargeback rates generally classify as high-risk clients.
• Sales Volume: Most merchant service providers process a minimum and a maximum number of transactions per month. 
• Business Nature: The payment processing industry generally regards businesses involved with travel, pharmaceuticals, CBD, adult entertainment, and credit repair, among other industries, as high risk.

Don’t be afraid to get a new POS system. While processing fees take a chunk of your profits, you can compensate for them through surcharges, convenience fees, or minimum order requirements. 

Moreover, having different payment methods make business expansion more feasible. Do a little math to see how much you’d need to cover, then strive to exceed that amount every month.

Do you need a quick primer on payment processing? Processing Card has you covered! Check out our comprehensive guide to CMS credit card processing services to learn more.