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How to accept card payments

As you look inside shops on busy streets, you will notice that more and more people don’t carry a wallet anymore, they’re using their phones to pay. As technology advances, we see more convenient ways to shop, making it easier for people to meander through the paces of life. Surprisingly, two-thirds of small and medium-sized enterprises still don’t accept card payments, making it harder for customers to pay, thus losing out on capital daily. For customers, the easiest way to pay is with whatever you have, whether that be electronically or on paper. The bottom line comes down to the fact that customers will not come back to your shop with cash if they can find something similar elsewhere, which if I’m being honest, you can probably find on the internet. Coins and banknotes were used for 17% of all payments in 2020, in comparison to 27% of payments that were contactless which is increasing every year.

Why don’t shops accept card payments? 

Accepting card payments for small businesses is better and more convenient for the business and customers, especially with the added benefit of it providing a cost-effective solution. Small businesses are sometimes apprehensive to accept card payments because they won’t want to go through the hassle of setting a contactless payment card reader up and having to figure out how everything works. Secondly, the business will have to pay for the privilege of using the reader. All in all, you will have to decide whether the ongoing payments are worth it, but one thing’s for sure, it is worth it for your customers and the customer is always right. 

Accepting card payment costs explained

Set up fees- The person providing your card reader will require a one time setting up and joining fee. This all varies depending on the company you choose.

Merchant service charge- Once the card readers are in use, the business owner is required to pay a proportion of the amount paid by the user to their acquiring bank. Merchant service charge fees are required as the bank has to assess and process the merchant’s daily credit and debit card transactions.

Minimum monthly service charge- A minimum monthly service charge is a minimum fee that will be acquired by the bank. The acquiring bank will only charge you when their merchant service charges are less than the minimum monthly service charge. 

Interchange fee- This fee makes sure that the process of the payment is transacted safely and securely. 

PCI DSS compliance fee- PCI DSS stands for Payment card industry data security standards and is required from all business owners that take card payments. The PCI DSS compliance fee is a payment made to help prevent and stop fraud from taking place. 

Accept card payments- How to get your payment terminal

To get your payment terminal, you will need to provide some key facts about your business. Then approved card payment providers will quote for your business. Then you’re ready to view your quotes and select your new payment provider! You can then choose a POS terminal and get started! Which one should you choose? 

Portable- Portable payment terminals are great if you need to be moving around, like if you run a restaurant and need to reach your customer tables. Portable payment terminals serve a great purpose for anyone who runs them. 

Interactive payment terminal - Maybe you’ve got a lot of products and need an interactive screen in order for your staff to have a visual cue to help them get on with their job quickly. 

Self service - Are you around your customers when they need to pay? Self service POS terminals are great for if the customer needs to pay themselves. 

Accept card payments- It’s time for your customers to start using card payments!

The card payment system could be up and running in a week as most applications are processed in just a few days after signing the agreement. The agreement will involve a few questions like “what does your business do”, “Do you sell face to face or over the internet?” “How are your finances” and “Do you file your tax returns on time?”. If these questions are successful, you’ll be up and running in no time. 

Accepting card payment tips for small businesses owners 

  • Encourage people to buy more by placing discounted items close to the till
  • Include all fee’s and costs in the price of the product 
  • Does the supplier support it’s customer using human beings or an automated service? Customer service is key if something goes wrong
  • All merchants must undertake payment card industry security tests each year, but look out for different and better suppliers as some will handhold you through the process to ensure that you pass. 

We hope you enjoyed our blog and are looking forward to accepting card payments. If you're new to card payments and want help getting started, or already take card payments but are interested in switching providers, complete our simple form to get a quote tailored to your specific needs.