How to Start a Credit Card Processing Company

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The use of credit cards continues to rise, and the use of debit cards for credit transactions has also increased in recent years. Credit card processing companies become the middle-man for retailers, taking care of credit transaction processing. What is more, starting a credit card processing company requires little more than a little research and planning and a few pieces of basic equipment.

Choose a location for setting up your credit card processing business. You may operate the business out of a commercial office location or even out of your home, as long as you maintain proper security to ensure customer privacy. If you plan to set up this business out of your home, create a dedicated office location for your work.

Contact local banks to present your business plan. Banks are an essential part of credit card processing, so you will need to work with a bank or banks to get your business going. Present the bank with your business plan, and let it know that you are starting a business to operate as an authorized agent of the bank’s in-house processing service. This means that you will be working with the bank as a contracted agent instead of an employee. Focus on working with only one bank at first.

Purchase the equipment that you will need to process credit card transactions. Find out if the bank requires specific types of equipment and software. The most common credit card processing machine is Verifone, but the bank might prefer something else. Credit card processing software includes programs from Intuit and Verifone. Ask the bank for its preference; if it lacks one, read reviews carefully before making your purchase. You will also need to purchase a wireless terminal and a pin pad, as well as reliable anti-virus software.

Become part of the Cardholder Information Security Program. This program will provide you with education in working as a credit card processor, and it will provide your business with credibility.

Contact local business owners to let them know about your business. Visit these businesses in person, and explain how you operate your business. Creating relationships with these business owners can create consistent, long-term business for you.


  • Let the bank know which types of businesses you will avoid working with. Certain businesses have a higher rate of risk than others, among them online businesses. Establish clear parameters in your business plan so the bank is confident you will be working with businesses they can trust. If you will be holding any sensitive customer information in your office, be sure to invest in a secure filing cabinet, bank boxes or a large safe. Let the bank know that you plan to keep confidential customer information as safe as possible.


About the Author

Kristie Lorette started writing professionally in 1996. She earned her Bachelor of Science degree in marketing and multinational business from Florida State University and a Master of Business Administration from Nova Southeastern University. Her work has appeared online at Bill Savings, Money Smart Life and Mortgage Loan.

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