How to Accept Credit Card Transactions

by Sharon Cotton; Updated September 26, 2017
Credit card acceptor

To accept credit cards, your business must be able to debit or charge the sale through use of a merchant account. This is account set up with a bank or credit-card processing company to manage the transaction and deposit money in your bank account.

Items you will need

  • Merchant account
  • Credit card terminal machine
Step 1

Accepting credit cards is necessary in any retail business. Most people do not carry a significant amount of cash for routine purchases. The credit card and debit card are more convenient, enabling them to make purchases without carrying cash and also keep better track of their spending.

Step 2

Research companies that process credit and debit cards by providing you with a merchant account. This may be a bank or a company that only processes transactions.

Step 3

Check the fees and discounts applied to each transaction. Most merchant accounts will involve a monthly fee. There will be a discount fee applied to the transactions. The processor will collect a percentage of the transaction. These fees vary greatly from provider to provider.

Step 4

Consider the time lag between the transaction and when money is deposited in your account. Some companies deposit each day’s transactions within 24 hours. Other companies may take several before the money will show in your bank account.

Tips

  • Check with the Better Business Bureau on the financial stability of any company you are considering. Your bank may be the best choice if timeliness of the deposit is important. Ask about a contract and details of the contract. Some merchant account providers will provide a terminal at little or no cost.

About the Author

Sharon Cotton has published articles on eHow in the medical, real-estate, sewing and small-business fields since early 2010. She earned a Bachelor of Arts at Marshall University. Cotton is also a nurse practitioner specializing in anesthesia, and received her diploma from Charleston Area Medical Center School of Nurse Anesthesia as a certified registered nurse anesthetist.

Photo Credits

  • credit card terminal image by Igor Zhorov from Fotolia.com