Today, accepting payment through credit card is typically used by online store retailers in selling their products and services. Online store owners have noticed that customers overspend their budget while spending with the credit card is the reason why most of the online store has to implement the use of credit card payment on their websites.

Even though the process is quite hard, small business owners will always try to join the service of taking credit card payments. But as the process is not that simple, it will require them to find the right payment processor to match their business because there is a lot of choices to choose from based on the monthly annual fee attached to it.

Although there are several types of fee value attach to choosing the perfect credit card payment processor. You shouldn’t allow it to be something that forms derive you from implementing the trending tool on your website. Accepting payments through credit cards can boost your company revenues to the max. All you need to do is find what suits your business scale with an average payable fee, which will be stable for customers to make payment through it.

Here is the critical step to undergo while choosing a credit card payment for your business;

Business owners who haven’t implement the credit card payment method on their website don’t even know what’s going on every time a customer uses the credit or debit card on an online store website.

  • Once a credit card is inserted into the payment system, whether online or card ready, it requires the user to accept the data of the card.
  • If you swipe the credit card on the card reader, the payment processor reads the card information and transfer the desired amount to the merchant account. But when you input the payment information of the card online, it passes through the integrated payment gateway on the platform to transfer the total payment amount to the business owner’s account.
  • Before the funds from your customer’s card is accepted into your account, it will first reach the bank where it will be either accepted or declined. Once it’s successful, your business account will be credited with the total payment made by the customer. It’s essential to funds from customers to pass this evaluation process because it will enable the bank to determine whether the user has enough funds, and there’s no fraud attached to the fund.
  • If the bank approves the payment, you will be prompt with a successful payment notification as well as credit alert notification from your bank. After that, you can quickly process the order of your customer.
  • It’s better to use a fast payment method or processor so that you will always receive payment on time to process your customer’s orders. Most of the payment system takes days before the fund will be approved entirely into your bank account.

 Choosing a merchant account or payment service provider

To accept payment through credit cards for your business, you need to select the method that works best for you, whether old or new. Although some factors do influence the decision on business owners in making this decision, especially when they want the original method but unable to pay the fees attached to it.

You are thereby moving to the old ways because of low fee payment. Before proceeding, you will need to have a verified merchant account or the all in one payment processing system (PSP). Each of them has its benefits and downfall, which affects them.

Here’s a complete overview of how both of them works;

  • Merchant account

Opening a merchant account is the traditional way of receiving payment through credit cards for business owners. The merchant account works the same as a bank account where all the funds paid in the purchasing of your products will be directly deposited into your bank account when approved.

A lot of providers manage the merchant account, including banks and other providers, which helps in processing of payment. The downfall of using the merchant account is that it attracts a lot of fees based on several reasons like monthly or annual fees, cancellation fees, or set up or configuration fees.

  • Payment service provider

The payment service provider is the modern payment method, which includes the use of popular payment providers like Skrill, PayPal, and Stripe. All of these service providers are more capable than just accepting credit card payment because they can even work in POS when you don’t have internet access.

The few of using these provide is minimum, unlike the merchant account. The payment service provider accepts a different variety of cards, whether credit or debit cards.

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