Accepting Credit Card Payments for Your Business: Channels and Fees

Welcome to the second article of our blog series on credit card payment acceptance. In our first post, we provided a detailed exploration of the various credit card processors suitable for diverse business needs, including traditional merchant accounts, payment service providers, and comprehensive integrated solutions like those offered by ReliaFund. We also discussed important considerations for selecting the ideal credit card processor for your business.

This article shifts focus to the practical aspects of credit card payment acceptance across multiple channels. Businesses will learn the intricacies of processing transactions in-person, online, and over the phone. We will also examine the specific technological requirements, operational best practices, and associated fees for each method, ensuring that you have the knowledge to choose the most effective payment solution.

Accepting Credit Card Payments: In-Person, Online, and Over the Phone

Businesses have the option to accept credit card payments through various channels, including in-person, online, and over the phone. Each method has its own technology requirements and associated fees. Understanding these options will help you determine the best approach for your business.

In-Person Payments

In-person credit card processing is ideal for businesses with physical locations, such as retail stores or restaurants. These transactions involve customers presenting their cards for payment. In-person transactions typically have lower fees compared to other methods, as they are considered less risky. To accept in-person payments, you will need a card reader and a point-of-sale (POS) system.

Online Payments

Online credit card processing is essential for businesses that operate primarily online or have e-commerce platforms. Online transactions typically have higher processing fees due to the increased risk of fraud. To accept online payments, you will need a digital storefront, such as an e-commerce website, and a payment gateway.

Over-the-Phone Payments

For businesses that accept payments over the phone, such as restaurants or service providers, over-the-phone payments are an option. These transactions involve customers sharing their credit card information, which is manually entered by the merchant. Over-the-phone transactions often have the highest processing fees due to the increased risk of fraud. To process credit card payments over the phone, you will need a credit card reader and a POS system or an online payments gateway.

Credit Card Processing Fees for Small Businesses

Credit card processing providers charge fees for the services they provide, such as fraud checks and verification with the cardholder’s bank. These fees vary based on the type of card and the processing provider. It’s important to understand the average fees and the fee structure for different credit card networks.

According to industry data, the average credit card processing fees range from 2.24 percent to 4 percent of the transaction value, plus a small transaction fee. The specific fees can vary based on the type of card (Visa, Mastercard, American Express, etc.) and the processing provider. For example, American Express tends to charge higher fees than its competitors, which is why some businesses choose not to accept Amex cards.

Here is a breakdown of the average processing fees for each major credit card network:

Credit Card NetworkProcessing Fee Range
American Express2.5% – 3.5%
Discover1.56% – 2.3%
Mastercard1.55% – 2.6%
Visa1.43% – 2.4%

It’s important to note that these are average ranges, and the specific fees for your business may differ based on your processing volume and agreement with the credit card processor.

Best Credit Card Payments Processing Services for Small Businesses

Choosing the best credit card processing service for your small business can be a daunting task. To help you get started, our team compiled a list of some of the top credit card processing providers in the market. These providers offer competitive rates, excellent customer support, and customizable solutions to meet the needs of small businesses.

  1. ReliaFund: ReliaFund is an electronic payment processor that offers integrated payment solutions for businesses. With seamless integration into software applications, ReliaFund provides businesses with a convenient and efficient way to accept credit card payments. They offer competitive rates, customizable solutions, and reliable customer support.
  2. PayPal: PayPal is a widely trusted payment service provider that offers various merchant solutions for processing credit card payments. They provide options for online payments, in-person retail, and invoicing services.
  3. Square: Square is a popular payment service provider that offers a range of solutions for small businesses, including mobile card readers and point-of-sale systems. They are known for their hardware options and ease of use.
  4. Stripe: Stripe is an electronic payment processor that specializes in online businesses. They offer competitive rates for online credit card transactions and offer additional financial solutions such as invoice processing.
  5. Shopify: Shopify is an e-commerce platform that provides businesses with a comprehensive solution for accepting credit card payments online. They provide competitive transaction fees and additional features for managing online sales.

Mastering Credit Card Payments for Your Business

Accepting credit card payments is essential for businesses in today’s digital era. By choosing the right credit card processor and understanding the different options available, you can provide your customers with a convenient and secure payment experience. Consider factors such as transaction volume, pricing, customer support, and payment security when selecting a credit card processor. By partnering with a reputable processor like ReliaFund, you can streamline your payment process and focus on growing your business.

Connect with the ReliaFund team today to learn more about their integrated payment solutions and how they can help your business accept credit card payments. Get a free analysis of your payment processing needs by visiting ReliaFund’s website.

Remember, offering credit card payment options can help boost your sales and improve customer satisfaction. Don’t miss out on this opportunity to enhance your business’s success.