Monday, March 27, 2023

3 Things SMBs Need to Know About Credit Card Processing


The world is transforming very fast in all aspects, and one of the critical shifts experienced in the business sector is the decreased use of cash. People are continually abandoning the use of cash to pay for services, with the eruption of the Covid-19 pandemic pushing the need to use electronic money transfers for business.

This shift has necessitated Small Businesses to continually accept the use of credit cards by clients to retain a broad customer base. However, SMBs must comprehend how credit card processing works to make rational choices and avoid unnecessary inconveniences. This article discusses three critical areas of concern for every SMB owner to consider while choosing a credit card processing company for their business.

Charges by Card Processing Companies

Firstly, the most critical area of concern regarding credit card processing is processing fees and terms. Credit card processing companies charge you various rates, with the fees per transaction being the most primary fees that you have to pay the card processing companies chosen.

The rates vary from one firm to another, with the mean rates from renowned credit card providers being from 2.25% -2.5% for the card-not-present transactions and 1.7%-2.05% for in-person operations. It is primal to understand the various rating structures credit card providers offer before concluding on a viable choice for your business.

Some processing companies charge a flat rate, which is best for a business accruing minimal monthly sales. However, others will charge you a monthly fee with lower per-transaction rates, and such a model will be appropriate if you have a substantially large sales volume. That said, your business revenue is critical in establishing the most appropriate card processing company to use based on their charging structures.

Security Concerns

Apart from the charges associated with a given credit card processing company, it would be best to consider the security concerns linked to specific companies. Most business owners are unaware of how payment security works and how to overcome the limitations. As a business owner, it is vital to understand that the mode in which a card is used could pose a potential payment security threat.

For instance, if a client uses the NFC capability or the EMV payment terminal, the processing environment applies tokenization as its security measure. The undertaking produces randomly assigned numbers to replace the personal account number. The token produced protects the account owner from defrauding, seeing data thieves who may intercept the transaction cannot use the token to identify the account owner.

This approach makes EMV chip cards the most desirable form of payment as it offers your clients optimal security for users. Consequently, it means that you have to select a credit card firm that offers the option of EMV use.


After successful application for credit card processing, it is essential to partake in aspects that will enhance the effective use of the cards by clients. The operating staff plays a pivotal role in successfully processing and using credit cards in your businesses.

However, a slight mistake by an employee could break the safety of the payments, costing the business intensely. Some of the critical payment concerns that may affect clients’ security are writing down the credit card numbers or placing them on file. It is also vital to ensure that the connection used to process mobile payments is secure and protected by a strong password. Also, any mobile device used to process payments must be up-to-date to evade security inconveniences.

Consequently, it is essential to look into a card processing company that offers instant credit card processing services to add to the convenience of using credit cards for your business. Fortunately, there are several card processing companies that can provide flexible rates and instant credit card acceptance.

Final Remarks

Allowing the use of credit cards by clients is vital in the contemporary world for it fulfills the increased need to cease the use of cash. However, you must consider the costs, safety, and convenience attributes linked with the card processing company you settle for to minimize costs and optimize customer satisfaction. You have to be keen while looking at the rates to discern hidden charges that may not be openly noticeable to optimize your revenue. Also, training employees and using secure mobile devices further heightens the effective use of credit cards for your business.


Please enter your comment!
Please enter your name here



Related Stories