# I am starting a business: I want to have the option for customers to pay by CC **URL:** \ **Category:** Factual Questions\ **Created:** [December 16, 2006, 6:28am UTC](https://boards.straightdope.com/t/i-am-starting-a-business-i-want-to-have-the-option-for-customers-to-pay-by-cc/384380 "2006-12-16T06:28:54Z")\ **Posts on this page:** 14\ **Page:** 1
**Author:** ![SweetHomeColorado](https://avatars.discourse-cdn.com/v4/letter/s/d26b3c/32.png) [@SweetHomeColorado](https://boards.straightdope.com/u/SweetHomeColorado)\ **Post date:** [December 16, 2006, 6:28am UTC](https://boards.straightdope.com/t/i-am-starting-a-business-i-want-to-have-the-option-for-customers-to-pay-by-cc/384380/1 "2006-12-16T06:28:54Z")
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? ---
**Author:** ![Gary\_T](https://avatars.discourse-cdn.com/v4/letter/g/3ec8ea/32.png) [@Gary\_T](https://boards.straightdope.com/u/Gary_T)\ **Post date:** [December 16, 2006, 6:50am UTC](https://boards.straightdope.com/t/i-am-starting-a-business-i-want-to-have-the-option-for-customers-to-pay-by-cc/384380/2 "2006-12-16T06:50:35Z")
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. ---
**Author:** ![Ruby](https://avatars.discourse-cdn.com/v4/letter/r/13edae/32.png) [@Ruby](https://boards.straightdope.com/u/Ruby)\ **Post date:** [December 16, 2006, 7:03am UTC](https://boards.straightdope.com/t/i-am-starting-a-business-i-want-to-have-the-option-for-customers-to-pay-by-cc/384380/3 "2006-12-16T07:03:16Z")
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. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [December 16, 2006, 7:04am UTC](https://boards.straightdope.com/t/i-am-starting-a-business-i-want-to-have-the-option-for-customers-to-pay-by-cc/384380/4 "2006-12-16T07:04:49Z")
Have you considered Paypal? ---
**Author:** ![DanBlather](https://avatars.discourse-cdn.com/v4/letter/d/f4b2a3/32.png) [@DanBlather](https://boards.straightdope.com/u/DanBlather)\ **Post date:** [December 16, 2006, 7:13am UTC](https://boards.straightdope.com/t/i-am-starting-a-business-i-want-to-have-the-option-for-customers-to-pay-by-cc/384380/5 "2006-12-16T07:13:25Z")
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. ---
**Author:** ![Rigamarole](https://avatars.discourse-cdn.com/v4/letter/r/77aa72/32.png) [@Rigamarole](https://boards.straightdope.com/u/Rigamarole)\ **Post date:** [December 16, 2006, 8:07am UTC](https://boards.straightdope.com/t/i-am-starting-a-business-i-want-to-have-the-option-for-customers-to-pay-by-cc/384380/6 "2006-12-16T08:07:08Z")
Go to Mastercard’s website [here](http://www.mastercard.com/us/merchant/start_accepting/index.html) 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”. ---
**Author:** ![SweetHomeColorado](https://avatars.discourse-cdn.com/v4/letter/s/d26b3c/32.png) [@SweetHomeColorado](https://boards.straightdope.com/u/SweetHomeColorado)\ **Post date:** [December 16, 2006, 8:45am UTC](https://boards.straightdope.com/t/i-am-starting-a-business-i-want-to-have-the-option-for-customers-to-pay-by-cc/384380/7 "2006-12-16T08:45:38Z")
what is the consensus on [https://www.yourpay.com/](https://www.yourpay.com/)? they were recommended through a credit care company but I see no prices. Has anyone had experience with them? ---
**Author:** ![Common\_Tater](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/common_tater/32/13846_2.png) [@Common\_Tater](https://boards.straightdope.com/u/Common_Tater)\ **Post date:** [December 16, 2006, 1:27pm UTC](https://boards.straightdope.com/t/i-am-starting-a-business-i-want-to-have-the-option-for-customers-to-pay-by-cc/384380/8 "2006-12-16T13:27:12Z")
Why do businesses allow use of a CC if the item is only $10 or so, then? Seems like a losing proposition… ---
**Author:** ![Sapo](https://avatars.discourse-cdn.com/v4/letter/s/ec9cab/32.png) [@Sapo](https://boards.straightdope.com/u/Sapo)\ **Post date:** [December 16, 2006, 1:42pm UTC](https://boards.straightdope.com/t/i-am-starting-a-business-i-want-to-have-the-option-for-customers-to-pay-by-cc/384380/9 "2006-12-16T13:42:22Z")
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. ---
**Author:** ![Sapo](https://avatars.discourse-cdn.com/v4/letter/s/ec9cab/32.png) [@Sapo](https://boards.straightdope.com/u/Sapo)\ **Post date:** [December 16, 2006, 1:44pm UTC](https://boards.straightdope.com/t/i-am-starting-a-business-i-want-to-have-the-option-for-customers-to-pay-by-cc/384380/10 "2006-12-16T13:44:48Z")
[QUOTE=Common Tater] Why do businesses allow use of a CC if the item is only $10 or so, then? Seems like a losing proposition.. [/QUOTE] 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. ---
**Author:** ![asterion](https://avatars.discourse-cdn.com/v4/letter/a/4da419/32.png) [@asterion](https://boards.straightdope.com/u/asterion)\ **Post date:** [December 16, 2006, 2:26pm UTC](https://boards.straightdope.com/t/i-am-starting-a-business-i-want-to-have-the-option-for-customers-to-pay-by-cc/384380/11 "2006-12-16T14:26:57Z")
[QUOTE=Common Tater] Why do businesses allow use of a CC if the item is only $10 or so, then? Seems like a losing proposition.. [/QUOTE] 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](http://www.ebizwebpages.com/main/merchant_agreement) on Google: > [@Merchant Agreement](#): > > (a) you cannot establish minimum or maximum amounts as a condition for accepting a Card; (b) you cannot impose a surcharge or fee for accepting a Card; (c) you cannot establish any special conditions for accepting a Card; (d) you cannot establish procedures that discourage, favor or discriminate against the use of any particular Card; however, you may choose not to accept either U.S. issued Debit Cards or U.S. issued credit Cards under the terms described in Section 1.3; (e) you cannot require the Cardholder to supply any personal information (e.g., home or business phone number; home or business address; or driver’s license number) unless instructed by us, except for a mail order/telephone order or delivery required transaction, and ZIP code for a Card-present key-entered transaction in order to obtain an Address Verification (AVS); (f) Any tax required to be collected must be included in the total transaction amount and not collected in cash; (g) you cannot submit any transaction representing the refinance or transfer of an existing Cardholder obligation deemed uncollectible; (h) you cannot submit a transaction or sale that has been previously charged back; (i) you must deliver at least one copy of the Sales Draft or credit draft to the Cardholder; (j) you cannot submit a transaction or sale to cover a dishonored check. Failure to comply with any of the Association Rules may result in fines or penalties. 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.) ---
**Author:** ![drachillix](https://avatars.discourse-cdn.com/v4/letter/d/48db29/32.png) [@drachillix](https://boards.straightdope.com/u/drachillix)\ **Post date:** [December 16, 2006, 4:28pm UTC](https://boards.straightdope.com/t/i-am-starting-a-business-i-want-to-have-the-option-for-customers-to-pay-by-cc/384380/12 "2006-12-16T16:28:02Z")
[QUOTE=asterion] 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.) [/QUOTE] 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. ---
**Author:** ![LouisB](https://avatars.discourse-cdn.com/v4/letter/l/dfb087/32.png) [@LouisB](https://boards.straightdope.com/u/LouisB)\ **Post date:** [December 16, 2006, 4:59pm UTC](https://boards.straightdope.com/t/i-am-starting-a-business-i-want-to-have-the-option-for-customers-to-pay-by-cc/384380/13 "2006-12-16T16:59:31Z")
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. ---
**Author:** ![SweetHomeColorado](https://avatars.discourse-cdn.com/v4/letter/s/d26b3c/32.png) [@SweetHomeColorado](https://boards.straightdope.com/u/SweetHomeColorado)\ **Post date:** [December 16, 2006, 6:12pm UTC](https://boards.straightdope.com/t/i-am-starting-a-business-i-want-to-have-the-option-for-customers-to-pay-by-cc/384380/14 "2006-12-16T18:12:44Z")
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?