When it comes to credit card processing and credit card processing companies, which will you choose for your small business? There are a variety of tech products out there that can help you collect "plastic payments" and then get paid at a later date from the company that you chose to help you process payments. The following examples will help you get started when you do not currently take credit cards as payment but you want to be able to take these sorts of payments going forward.
Dial-up Payment Processing
You may see this option a lot in gas stations, but it is used elsewhere. You have a credit card swiping machine that has its own phone line connection. The phone is a digital connection that goes straight to the credit card processing company. When a customer swipes their credit card through the machine, the machine dials the processing company. The processing company verifies that the card is genuine, that it has enough credit to allow the transaction to clear, and that the person swiping the card is the same as the name of the cardholder. It is not as secure as some other types of card processing devices, but it is a good start if you do not have anything else in place.
Mobile Card Readers and Apps
Certain mobile card readers and apps can help too. Essentially you order a card swiping device that plugs into your tablet or phone. You download the related app onto your device, establish your account, and then begin accepting credit card payments. The company that owns the app and the mobile card reader communicates with the issuing credit card companies to verify funds, and then you are paid by whatever means the card reader/app company has chosen, or by whichever option you have chosen via the card reader/app company.
Third-Party Versus Direct Processing
A lot of the technology and devices developed to help you take credit card payments from your customers is third party processing. It means that there is a "middle man" taking payments and helping channel those payments through the four main credit card companies or the smaller banking industries that extend credit to consumers. There is also direct processing, which connects a card payment directly to the issuing bank who then processes payment almost immediately. You will have to decide which kind of processing is easiest for your small business.
For more information, contact a credit card processing company.
