What steps do I have to take in order to take credit card payments and how much cost am I looking to incur?
My business will basically be taking payments over the phone. Rarely will we be actually ‘swiping’ the card.
Can someone tell me what hoops I have to jump through to set this up?
When I opened my business, I just called my bank about this. They set me up with a processor they worked with.
I don’t recall if there was any kind of enrolment fee. If there was one, it was small.
I was not a “most desired” client in that it was a new business with no track record, and expected weekly CC sales were on the small side compared to a typical retail sales operation. Some processors weren’t interested. My transaction fees were probably higher than what the high-volume businesses paid.
After I’d been in business a few years, every other phone call was some @%^# trying to sign me up for their company’s card processing service. I stayed with the folks that gave me a chance to get started. Never had a glitch in their processing service (and yes, it does happen).
Earlier this year, my bank changed processors. I don’t like the new one. They’ve done some things that are somewhat minor but extremely annoying. I’m thinking of finding a different processor. If I pursue that, my first call will be to the first processor I dealt with, and my second will be to the one that is affiliated with a trade association I belong to. I’m still wary of “just any old” processor, as I sense that some of them a bit shady.
There are many, many credit card processing companies that want your business. Just ask some local retailers who they use.
There is a fee per transaction depending on the amount that charged and the number of charges but that’s all the fees I recall.
Have you considered Paypal?
What your need is a “merchant account”. Costco has good rates as part of their business services. Make sure to keep in mind the CC fees when you set your prices.
Go to Mastercard’s website here and register for the referral program. They will give you a list of merchant services processors. Beware: if you do give them your contact information, be prepared for lots and lots of calls/e-mails.
As far as what the fees are, they will usually be something like $0.10-0.25 + 1-2% of every transaction. They will also offer to lease/sell you the equipment necessary to run the cards. If you are never going to be swiping cards, you may not need this, but you said “rarely” rather than “never”.
what is the consensus on https://www.yourpay.com/?
they were recommended through a credit care company but I see no prices.
Has anyone had experience with them?
Why do businesses allow use of a CC if the item is only $10 or so, then? Seems like a losing proposition…
What kind of business? Many small transactions or few large ones?
I had a UPS Store for a few years and through the magic of franchise negotiation got a processor to offer me a deal with no transaction fee (just a straight percentage). For a business relying on many small transactions, that can be the difference between profitability and being nickel-and-dimed to bankruptcy. I would be visited at least once a week by a different vendor offering a different deal. My answer was always “only if you can offer no transaction fees”. That was often followed by their abrupt departure.
Look for a vendor with no transaction fees. Fight for it and have it fixed on contract for the duration.
for what I just posted without reading your question. There is normally a transaction fee. For a small transaction on products with slim margins, it can eat the whole profit of the transaction.
If you look at basically any merchant agreement, there are lots of restrictions on what the merchant can and can’t do. From a hit on Google:
A minimum purchase restriction is probably going to violate any merchant agreeent. In fact, companies like Visa and MasterCard actually have numbers a customer can call to report violations of the merchant agreement (and I must admit, there’s been a few times that a business has angered me enough to at least think about calling.)
Unfortunately at least to the best of my knowledge this has never been enforced. In my case when people ask about payment I tell them I prefer checks “so I don’t have to share with VISA” . Many offer to pay the extra 3% to use the card. Cracking down on transaction fees is in some respects biting the hand that feeds them. Don’t expect much glorious retribution.
In Florida at least, if you incorporate or register a fictious name, you will be absolutely swamped with mail offering to provide you with credit card processing. I would imagine it would be the same elsewhere.
Well, I think i have some connections for reliable deals. Thank you.
Regarding a bank account in Illinois. This obviously needs to be step 1.
With that said, does any money need to go into the account initially? I would assume we would need a checking account and I’ll be looking for a bank which has locations throughout the US. What type of documentation will I need to provide?