Learn Credit Card Terminology

While you don't have to become an expert on credit card processing, you should be familiar with the terminology and have a working understanding of the main concepts. The “issuing bank” provides credit cards to their approved customers. A “merchant bank”, where you have your bank account, can facilitate transactions between bank accounts, or a third-party ”credit card processor” can handle them for you

Credit Card Processing

There are several options you will need to consider with credit card processing for small businesses. If you have a brick-and-mortar location, you will need a physical point-of-sale system or a mobile credit card reader in order to swipe a customer’s card. If your business has an e-commerce option or you are selling entirely online, you'll have to set up a payment gateway to process credit card transactions online.

Understand The Requirements & Fees

Some banks or large credit card processing companies may have minimum revenue requirements in place and your application may be rejected if your business doesn't reach that amount. However, there some credit card processors who cater specifically to small businesses and don't require a large monthly revenue minimum. Your processing fees per transaction can vary, so check in advance before signing up.

It's vital to have adequate data security measures in place before you start taking credit card payments. Ensure your credit card processor has properly set up all the security protocols. It's also important to make sure you understand how credit card processing fees work and how they'll play into your profit margin.