How can accept credit card payments

This process involves the customer sharing their credit card number with the merchant, and the merchant manually entering that information into their card reader. These types of transactions typically incur the highest processing fees because they pose the greatest risk for fraud. The payment terminal conducts these critical security measures in just a few seconds as soon as a customer swipes, taps or dips their credit card. There are usually no monthly fees for credit card processing.

Instead, most providers charge fees per transaction. While fees vary based on the type of card Visa, Mastercard, American Express or others and processing provider such as PayPal, Stripe, Square , they typically range from 1. The bad news is, there is no one-size-fits-all solution.

Note the fees below are all based on transactions in USD. Rates vary by currency. While PayPal began as a way to send money to friends and family online, the company now offers various merchant solutions for processing credit cards both online and in person.

PayPal charges the following processing fees for credit card payments:. Shopify is an e-commerce platform that helps businesses sell products online. With Shopify Payments , they also support in-person and online credit card payments. Shopify charges the following processing fees for credit card payments:.

Square is known for its innovative, petite card reader that can be attached to smartphones, turning any device into a payment terminal.

Thanks to its compact hardware offerings, Square is great for mobile businesses like food trucks, market vendors or in-home service providers like plumbers. Square charges the following processing fees for credit card payments:.

Stripe was built with online businesses in mind and offers sophisticated payment processing solutions that can scale as your company grows.

Stripe charges the following processing fees for credit card payments:. Venmo is known for its safe, mobile money transferring service. Then, customers will be able to use the Venmo app to make payments through the credit cards linked to their accounts.

Venmo charges the following processing fees for credit card payments via Braintree:. How We Make Money. Ana Cvetkovic. Written by. Edited By Mariah Ackary. You also agree to the Terms of Use and acknowledge the data collection and usage practices outlined in our Privacy Policy. A name that everyone recognizes. A favorite for in-person and online businesses alike. Well-known for its online payment processing. How to accept credit cards for your small business Accepting credit cards for your small business isn't difficult, but like many parts of starting a business, it can feel overwhelming when you're just getting started.

We've broken the process down into just 3 steps you can start today. Step 1: Decide how you'll accept payments First, decide how you will accept credit card payments. The primary options are: In-person payments Online payments Mobile payments Depending on the type of business you run, it might be quite clear what type of payments you'll accept. You know your business best, and only you can decide how you'll need to accept payments. Step 2: Choose your payment processor It used to be that to accept credit card payments for your small business; you would need a merchant account.

Step 3: Get the right hardware and software Depending on the type of business you run, you might need to have hardware or software in place. What are the best payment service providers? PayPal A name that everyone recognizes PayPal is a name that everyone recognizes, and for good reasons. As of that date, the fees will be as follows: Digital PayPal payments: 3.

Square A favorite for in-person and online businesses alike Square is another of the top credit card processors and has become a favorite for in-person and online businesses alike. Square's fees are as follows: Card-present in-person payments: 2. Card-not-present in-person payments: 3.

Online payments: 2. View now. Stripe Well-known for its online payment processing Stripe is another great option for companies that need to accept credit card payments. Stripes fees are as follows: Online credit card payments: 2. In-person credit card payments: 2. A recent study found that people spend between 12 and 18 percent more when they use credit cards rather than cash.

Offering flexible payment options that include credit card payments gives your clients a better experience and encourages loyalty. Many clients prefer to pay using a credit card because they can quickly and easily process the payment online, rather than having to fill out and mail a check. Unlike checks, which often take between five and ten business days to clear through your bank, credit card payments are processed relatively quickly.

Often, credit card payments are cleared and the money appears in your business bank account within a day or two of the transaction. Most credit card processors allow you to accept credit card payments with a few simple clicks, saving you time. Accepting credit card payments can mean your business has less cash on hand, which lowers the risk of theft or loss.

Although there are security risks with accepting credit cards, in many cases fraudulent charges can be recovered when you use a merchant service provider.

Most credit card payment processors provide robust sales reports based on your transactions. It is the virtual equivalent of a physical POS terminal. Payment gateways encrypt private data, such as credit card numbers, to ensure the information passes securely between the customer and the merchant. Some options for online payments include:. Once you submit a merchant account application and are approved, your merchant services provider will help you activate your payment gateway if doing business online , set up any equipment you may need if accepting in-person payments , and run successful test transactions.

This is a set of guidelines that was created by the card brands to help keep consumers, businesses, and banks safe from fraud and abuse.