How to Start a Payment Processing Company

credit card terminal image by Igor Zhorov from Fotolia.com

Payment processing companies help people pay bills online, over the phone, by credit or debit card, and by check. These companies have so much opportunity that starting your own payment processing company may be a great idea. Here's a step-by-step guide to opening your payment processing company.

Payment processing companies help people pay bills online, over the phone, by credit or debit card, and by check. These companies have so much opportunity that starting your own payment processing company may be a great idea. Here's a step-by-step guide to opening your payment processing company.

Decide whether you want to become a third-party service provider or bill-payer service or whether you want to start a payment processing company of your own. As a bill-payer service, your payment processing company will be working with companies that handle telephone, utilities, and mortgage payments. As a third-party service provider, your payment processing company will be used to pay bills online, including credit card bills. Your profits will come from a small usage fee you impose for use of your services.

If you're interested in starting your own payment processing company, contact your local commissioner of the revenue and apply for your payment processing company's business license. Visit your local county clerk's office to file the name of your payment processing company. Go to the Internal Revenue Service (IRS) website to file your IRS form SS-4 for your Employer Identification Number (EIN). You'll receive your EIN immediately if you file online.

Hire employees for your payment processing company. Employees should be motivated, determined, upbeat, and social. One employee should be a qualified manager. The manager should be responsible for weekly schedules, training new employees, follow-up calls, and sending out information packets. The other employees should make phone calls, create invoices and statements, and help process customer transactions via phone or online. One employee should be full time and the others should be part time.

Visit your local office software store. Buy a special software program that will enable your customers to access and view statements, payments, and transcations. If needed, hire a professional website designer to help develop payment software for your payment processing company. Include encryptions to protect customer confidentiality as well as those who will manage the website, such as the founder of the payment processing company.

Advertise your payment processing company by placing ads on social networking sites and in publications such as business newsletters and newspapers. Your advertisements should include the name of your payment processing company and its location, hours of operation, and contact information. The advertisements should be written so that they are easily understood by all prospects. Create business cards and brochures. Use the brochures and business cards together to form an information package to send to prospects who leave their contact information on your payment processing website. Follow up with the prospects to determine their suggestions and interests.

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About the Author

Ashley Terrell has been writing professionally since 2007. Terrell has written for SwaggaKings.com and "Parle Magazine." She also served as a beauty editor for "Raw Talent Magazine." Terrell is pursuing a degree in business from Bryant and Stratton College.

Photo Credits

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