Five tips to get your business taking card payments
How to accept card payments as a business
If your business has never taken card payments you may be missing an opportunity to increase sales and offer improved customer service. The coronavirus pandemic has led to a rise in demand for contactless card payments in particular, but it can be daunting to choose a payment scheme and understand how the process works as a whole.
So here are five tips to help your business get started with card payments and offer a flexible, fast, and secure payment option for your customers.
1. Understand who is involved in the card payment system
- Merchant acquirer
Merchant acquirers provide the equipment for processing payments, and deal with authorising and processing transactions
- Acquirer processors
Acquirer processors work on behalf of groups of merchant acquirers
- Introducers
Introducers work on behalf of acquiring companies, selling the services to merchant businesses
- Card issuer
This is the bank or financial institution that has issued the payment card to your customer
- Merchant
Your business is the merchant
These are just some of the parties that could be involved when setting up card payment systems. As you can see it can be complex and some of the parties’ roles may overlap, which adds to the complexity.
2. Obtain detailed information on fees from potential providers
Fees for taking card payments are typically quoted as an amount or percentage per transaction. The charges are partially dependent on how many card transactions your business will process, so if you regularly make a substantial number of card sales your fees may be lower.
The bank’s risk is also assessed, so if you operate in a high-risk industry such as gambling, your charges will be higher in order to account for that. They’ll also look at how you’ll take card payments in your business - essentially, whether the customer will be present, not present, or a combination of both.
It’s highly advisable to request a list of all your fee options rather than accepting an initial ‘headline’ rate, though, as there could be hidden or falsely inflated fees included.
3. Assess the whole card payment package
Don’t just focus solely on fees when you’re starting with card payments - look at the whole service package that’s being provided. This might include the scale of support that’s available should you experience problems with the equipment, for example.
Telephone support from human beings rather than artificial intelligence is beneficial when you need immediate advice. Additionally, you need confirmation of how quickly you’ll be paid and whether your supplier will support you with mandatory yearly Payment Card Industry (PCI) checks.
4. Consider security and PCI checks
Your customers need to trust your business with their payment and personal data, so you should review your practices with this in mind. Cardholder data is highly valuable and in the wrong hands can create significant disruption and financial loss for customers.
The Security Standards Council operates a Payment Card Industry checklist incorporating areas such as network security, storage and protection of cardholder data, and network monitoring/testing processes. PCI compliance is vital for businesses taking card payments, and should be a priority from the start.
5. Seek specialist advice on card payment systems
It’s highly advisable to seek professional guidance on the best card payment system for your business. With so many potential options, making a mistake can be costly. Your accountant is well placed to understand your business’ needs when it comes to taking card payments, and can provide the reliable advice that’s required.
If you don’t currently use accountancy services, Handpicked Accountants can provide referrals for fully qualified accountants in your location. We base our recommendations on knowledge of their working practices and standards of service, so you can rely on the advice they provide. Please get in touch to find out more.
