How to Accept Credit Card Payments Online

As a business owner, you need to receive payment one way or the other. Nowadays, the best way to go is online, as most businesses are conducted online without meeting your customers. One of the questions business owners want to know is how to accept credit card payments. This guide will show you what you need to know and how you can get payments via credit cards with no risk.

First, you should understand that there are three ways to receive credit cards. Business owners can choose to accept them in person, over the phone, or online.

In-Person Payments

Receiving payments in person is the traditional way most retailers accept credit cards. In this case, the customer will present his or her card for payment while the business owner will have a POS system to receive the payment. The in-person transactions carry lesser risks because the cardholder is present throughout the entire exchange.

Phone Payments

This transaction usually takes place over the phone and especially when customers are taking orders. The common practice, especially if the customer is placing an order for food at a restaurant, will be to share the credit card details with the vendor. The vendor, in turn, enters these details into the card reader. This is a very risky transaction and puts the cardholder at risk of fraud.

Online Payments

Online payments are the third method used and will be our main focus in this article. Most businesses accept credit cards online through the help of digital service providers. In this case, the vendor will rely on a card processing company to manage the credit card payments.

Online transactions may have high associated costs but still, carry fewer risks. If you intend to start accepting credit card payments, you will need certain things like your website or e-store and a payment gateway.

Ways to Process Credit Card Payments

Like we already mentioned, to receive payment via credit card online, you will need to have certain things in places like your website or e-commerce store. We have listed the essential ways to start receiving these payments.

1. Choose A Credit Card Processing Provider

Many companies offer payment processing, and these services come at a paid rate. After you have decided that you want to receive credit card payments online, you can find a reliable card processing provider. You will also need to consider the type of credit cards your business will be accepting. Currently, we have credit card companies like MasterCard, Visa, American Express, Discover, and many others. The fees for processing these card types usually vary, and that is why you must get a provider that offers a reasonable rate for most of these credit cards. Another factor that can influence your choice is the volume or number of transactions you conduct daily. Some providers have better rates for businesses handling a large volume of transactions.

If you manage only an online business, it will be easy to have your provider link your payment systems to your website.

2. Open Merchant Account

When you have finally got a credit card processor, you can proceed to open a merchant account. It is always good to have a separate business account that is focused on receiving card payments. Opening a merchant account is easy, and you will need to find out the process from your financial institution. The requirements vary depending on the bank you choose to use.

3. Set up Payment Terminals

You need to set up a payment terminal across your businesses. That is if you are managing both an online or traditional store. For store operations, you will need a card reader or POS system to receive payments. You will need an e-commerce platform where your business can accept payments. If you don’t have a website, you can use e-commerce platforms like Shopify which usually have a payment portal infused in their systems. If you own your website, you can get your credit card processor to add your credit card to your business website. You can have your website receive payment in different forms. You can use any of the following options for your online payments:

• Hosted Payment Form or Checkout Page: 

Typically the hosted form is embedded on your business website. It can be customised or come in a simple format. Since your credit card processor manages the paper, it is very safe and won’t expose your customer’s transaction data. It is important to note that once you begin accepting credit cards, you will need to comply with Payment Card Industry Data Security Standards (PCI DSS).

• Shopping Cart:

You also have the option of integrating a shopping cart into your e-commerce store. After you have included all your products on the e-commerce platform, it will be easy for customers to check out payments on the shopping cart.

Credit Card Payment Benefits

It has become part of the business tradition to include credit cards as part of payments. Most businesses have adopted this method and are going cashless. There are many benefits of accepting credit cards, and here are some of them:

• Increase in Sales and Profits

When you give your customers multiple options to pay for goods and services, it will increase patronage. It will also attract more people to want to conduct business with you.

• Encourages Your Customers to Spend

It has also been observed that customers are inclined to spend more using credit cards. If they had cash and were to look at the cost, they may be discouraged. However, since online payments are seamless, they will feel comfortable purchasing goods from your business.

• Increases Cash Flow

Another benefit of credit card payments is that the payment is faster and seamless. You can receive your payment instantly, unlike when you accept other payment methods like checks.

• Fosters Customer Loyalty

When you offer your customers multiple ways to pay for your services, it increases trust. They know they can count on you to provide them with a seamless way to get the things they need. The key to a successful business is having return customers, and adopting credit card payments will undoubtedly keep your customers coming back.

Some of the Credit Card Payment Risks to Remember

Although the benefits of using credit cards outweigh any negative side, we also need to remind you of the risks attached to accepting credit card payments. There is always the risk of third-party unauthorised access and fraud, primarily because of the data exposure. Businesses are expected to comply with the Payment Card Industry Data Security Standards (PCI DSS) when accepting credit card payments.

The PCI DSS has a set of guidelines that you need to comply with to keep your customers’ transaction data safe. The PCI was established by credit card companies like Visa, MasterCard, American Express, and others to ensure the safety of cardholders’ details. The system is designed to prevent hackers from gaining access to people’s financial data and control fraud.

As a business owner accepting credit card payments, you need to be PCI compliant. If you have a compliant credit card processor provider, it reduces the risk of violations. Most merchant accounts are usually in partnership with third-party vendors which are already certified. This will help identify any vulnerabilities and will keep your business PCI compliant.

If a business fails to comply with the PCI DSS requirements, it comes with penalties and fines. This can be:

• Payments of fines between $5,000 to $10,000 per month until compliance is met.
• You may get lawsuits and damages in the case of a breach.
• Violators will get payment of expenses arising from the fraudulent loss.

Another thing you should bear in mind is the costs or charges associated with accepting credit card payments. The cost usually does not fall on the customer but the business accepting these payments. The charges or fees typically vary depending on the credit card company. You will need to find out these charges when accepting credit card payments. Other than these two, businesses enjoy a seamless experience receiving payments for their goods online. It is safer than other payment options and you get your payments immediately.

Bottom Line

You can start receiving credit card payments now that you know everything involved. It is easy to set up once you have a credit card processor and a payment gateway. At Paykassma, we are happy to help you with the process of accepting payments for your online business. Our experts will provide the much-needed advice to ensure you remain PCI DSS compliant. We suggest you start receiving credit card payments if you haven’t already. There are a lot of benefits attached to it, and you get to grow your business.