How to Accept Credit Card Payments: Guide for Small Businesses

Share this article:
Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
Benefits of Accepting Credit Card Payments
Ways to Accept Credit Card Payments
1. In-Store Credit Card Payments
2. Online Payments
3. Mobile Payment Processing
Requirements for Accepting Credit Card Payments
A payment processor: A payment processor is the service that initiates and completes the transaction with the credit card companies and the banks. A point-of-sale system (POS): A point-of-sale system involves both software (to track inventory, views sale history and register the sale) and hardware (including items like a card reader, a bar code scanner and a cash drawer). A card reader: If card readers aren’t included in your POS system, you’ll need to get one separately. You can either get these items bundled together from one provider, or you can buy them separately.
A payment gateway: A payment gateway is a digital system that allows customers to securely enter their credit card information for payment. A payment processor: A payment processor for online payments is similar to one for in-person payments in that it initiates and completes the transaction with the credit card companies and banks. Some payment gateways also include payment processing services.
How to Accept Credit Card Payments
1. Find a Credit Card Processing Provider
2. Create a Merchant Account
3. Set Up Your Payment Terminal
Applicable Fees for Accepting Credit Card Payment
1. Interchange Rate
2. Transaction Fee
3. Service Charge/Fee
The Takeaway
Frequently Asked Questions
About the Author
Jason Steele has been writing about credit cards and award travel since 2008. One of the nation's leading experts in this field, he has contributed to dozens of personal finance and travel outlets and has been widely quoted in the mainstream media.
Share this article: