If you’re including electronic payments in your business, you’ll need credit card processing services. These will allow you to process payments from customers who use their credit or debit cards to make a purchase.
Before you commit to a credit card processing service, it’s important to know what you’re getting in return. That’s why, in this article, we at Payment Nerds will discuss everything there is to know about credit card processing services: what they are, the types of services they bring, finding the right one, and how it will benefit your business.
What is a Credit Card Processing Service?
A credit card processing service is a company that acts as a middleman between you (the merchant), your customers, their bank (the issuing bank), your bank (the acquiring bank), and the various card networks that facilitate the whole system[1].
The credit card processing service helps streamline payments but also provides support to customers, such as managing chargebacks and monitoring for and preventing fraud. It may also provide additional tools such as automated invoicing, inventory management, recurring payments, and data analytics.
The best credit card processing services act as partners or support teams for your business, providing you with the capabilities to serve your customers better. Payment Nerds is one such credit card processor that provides a wide range of supportive services along with fast, secure payment processing for all types of businesses.
Types of Credit Card Processing Services
A credit card processing service provider offers a range of different services that many aren’t aware of. Some of these services you should look out for when shopping around credit card processing companies include:
POS Systems
Many credit card processing service providers provide either their own proprietary point-of-sale (POS) system or models from third parties. These systems help your business quickly integrate credit card processing services into your business, allowing you to accept credit card payments as soon as the POS is installed[2].
Mobile/Contactless Payments
Certain credit card processing companies also enable businesses to offer contactless or mobile payments by providing the right POS systems to support them. These allow customers to pay by ‘tapping’ their cards against a POS device or placing their smartphone or mobile device near the payment terminal.
Online Payment Solutions
Credit card processing services also provide payment gateways that businesses can implement into their website’s checkout system. These ensure customers can securely provide their payment information to make purchases from your business online using their credit or debit card and alternative payment methods.
Processing International Payments
Certain credit card processing companies can also process payments from other countries, allowing your business to accept payments from around the globe. More specifically, these credit card processors can support different currencies.
Some may even provide dynamic currency conversions for international transactions, converting payment amounts from one currency to another in real-time, ensuring both customers and businesses receive their fair value.
Mail Orders & Telephone Orders (MOTO)
Some processors offer mobile order and telephone order (MOTO) transactions, which are payments processed when a customer isn’t present or when you don’t need them to confirm their payment card details when the transaction occurs.
MOTO transactions are useful when customers pay with their card over the phone or by mail through an offline form of credit card processing. An example is when your customer gives their payment details over the phone, and your representative manually types them into your POS system.
They are also useful for repeated, low-value transactions, such as with food delivery services. They eliminate the need for customers to re-confirm their payment details if they’ve already paid your business with the same card[3].
Billing, Invoicing, & Reporting
Credit card processors also provide several helpful software and business tools that assist merchants with billing, invoicing, and reporting. These tools help businesses streamline payment and financial-related tasks within their organization.
They can include automated billing and invoicing integrations, as well as reporting and analytics dashboards that indicate trends among customers, sales transactions, and overall revenue. These tools can help significantly improve your sales and financial management[2].
Fraud Prevention & Security Monitoring
Every top credit card processing company provides some security support for the merchants that use them. This involves processing all your business’s transactions only after all sensitive customer data is encrypted and protected from hackers who may potentially get a hold of it.
They will also ensure their systems and practices are all PCI-DSS compliant, meaning they will have all measures in place to ensure your customers’ card information remains safe. This also means your business carries less of the burden of ensuring compliance with regulations[2].
Choosing the Right Credit Card Processing Service
Selecting the right credit card payment processing company for your business is an important decision. Many options are available, but only one will fit your business and its industry while providing it with room to grow. Here are a few elements in a credit card payment processor we recommend you consider:
- Suitable for Your Business – Some processors are less likely to offer suitable transaction fees and rates if they consider your business high-risk. Find ones that are willing to provide their services at fair rates. Also, look for processors with a long track record of processing credit card payments for businesses like yours.
- Profitable Processing Fees & Rate – After receiving a quote from a potential processor, consider your sales volume and calculate whether their fees and rates are feasible for your business. In some cases, you may be paying for more than you need.
- Compatible Integrations – Find out how well the processor integrates with your existing systems and software. The right integrations with your POS system, eCommerce website, and accounting software can significantly affect your business’s efficiency.
- Scalability – Look for companies that offer options to adjust their services, transaction rates, and monthly fees according to your business’s size and sales volume.
Conclusion
Credit card processing services allow your business to accept payments via credit and debit cards and offer a range of beneficial features. From POS systems that are fast and easy to set up to business tools that help streamline your financial operations, the right credit card processor can bring your business closer to success.
Payment Nerds is one processor that provides numerous payment processing solutions for all kinds of businesses, tailoring them to fit the needs of businesses that partner with us. We’re also fully transparent about our service prices and fees and offer a round-the-clock support team to ensure you experience minimal issues. Learn more about our credit card processing service today.
Sources
[1] Forbes. “10 Best Credit Card Processing Companies Of 2024.” Accessed October 28, 2024.
[2] U.S. Chamber of Commerce. “How to Choose a Credit Card Processing Provider.” Accessed October 28, 2024.
[3] Amazon. “Processing offline payments (MOTO).” Accessed October 28, 2024.