How to Accept Credit Card Payments

How to Accept Credit Card Payments – Let Your Customers Pay the Way They Want

Do you have to say no to every customer who wishes to purchase your product / service because he / she presents you with a credit card? How many customers have you lost so far for not being able to accept credit payments? And, how much has your business suffered because your customers did not have a payment option that best suited them?

Owning a business brings every businessman a new challenge every day; increasing sales, raking in profits, minimizing losses, looking after every employee, satisfying your customers and the list just goes on.

Did you know that you could boost business sales by accepting credit cards payments? If you lost two credit card customers out of every ten customers, you lose 20 credit card customers in every hundred; and if you keep weighing the loses, you will realize that your business would have done much better if you were able to accept payments?

How Do You Accept Card Payments?

You must have thought that you were better off accepting cash payments by avoiding the hassles that come with payments until you began weighing your losses. And now that you’ve decided to let your customers pay the way they want, what you need to know is how to go about accepting process.

Let us consider a stepwise approach to accepting credit and debit process.

1. Set Up A Merchant Account

The very first step to accepting credit and debit cards is setting up a merchant account through your personal bank or a financial institution in order to accept cards. Customer payments will get deposited into your merchant account.

2. Obtain Processing Equipment

You will be required to either lease or buy card processing equipment such as a card reader and a modem to be able to accept and swipe your customers’ cards.

3. Online / Mobile Processors

If you have an online store and you wish to accept credit card online or through a mobile device, you can determine the appropriate payment acceptance solution with your merchant processing service provider.

4. Understand the Fees

Merchant accounts do not come free of cost. Being able to accept cards is a privilege for your business which you have to pay for. If your customer makes a payment of $100, depending on the fees charged by your merchant processing service provider, there will be a minor deduction in the amount deposited into your account. However, if you consider the number of customers that purchased your products / services because they had a flexible payment option, the fees to maintain a merchant processing account seems negligible.

Why Accept Card Payments?

Credit and debit cards are becoming increasingly popular. Customers prefer to opt for the convenience, flexibility and security that plastic money offers them over carrying bundles of cash around. Also, if as a business owner, you were to weigh your losses stemming from non-acceptance of credit card, you will find the significant difference alarming. Accepting credit card payments, therefore, not only benefits your customers who are being offered convenience with the option to pay the way they want, but it also benefits your business since you do not lose out on sales.

Credit Card Payment Calculators

Credit Card Payment Calculators – Why They Are an Invaluable Financial Tool

Making timely payments on a credit card balance is both essential and beneficial. To build a credit score, payment month by month on some type of credit line is absolutely necessary, but not paying on that credit can mean penalty charges and negatives against your score. When balances are high and interest rates complicated, a credit card payment calculator can be a great tool. There are now many tools available on and off line to calculate a credit card payment accurately. The ability to keep tabs on what will be required for payment is essential.

BankRate is an online center that is considered a valuable credit card payment calculator. This website does require quite a bit of information to calculate your payment, but, once entered, allows you an accurate view of what you will be required to pay before your bill is even calculated by your company. When monthly bills are piling up, knowing your credit card payment balance early can mean the difference between a tight budget, and a choking one.

There are other benefits to a credit card payment calculator. Perhaps you are considering making extra payments on your credit card, but you want to know if that is an action worth taking. Although it almost always is, knowing the amount you will save and the amounts you would need to pay to save a certain total is always beneficial. MSN money can be a valuable resource in many areas, but their payment calculator helps you determine how much you could save with extra payments. Bringing down your card balances us a goal many Americans have, and determining exactly how much you can afford to spend and save can help you achieve such a goal.

For a simpler solution to a credit card payment calculator, visit the federal reserve website. Although the federal reserve (sometimes referred to as the FED) has many critics, its website contains several useful links for your financial needs. At http://www.federalreserve.gov/creditcardcalculator/, the FED requires you to simply enter your highest APR and your total balance to determine your payment needs. This service is free, and can be an easy way to determine your card bill before it is ever tabulated by the company. Use the FED website for this and other financial information.

CNN and other entities also have a credit card payment calculator. The services offered by CNN are designed to aid in the reduction of debt and bad credit scores. Through proper accounting and governance of one’s funds, bills can be paid on time and even eventually decrease. By determining how to make the most advantageous payment amount on your balance, you can keep your debt down. Many accountants and local bank also have resources to calculate payments, and are usually labeled account services. Check with your local branch to see if they offer a solution to calculating the best possible payment for your credit card balance.

Setting up an automatic payment for your balance at the most efficient amount can lead to a better financial life. The payoff calculator at creditcards.com can aid in doing just that, and can lead many people who are lost in debt into the sun. You do not have to wait for your monthly bill to determine the funds you need to pay. Determine your payments earlier with a payment calculator, and budget accordingly. The days of uncertainty in bills and payments is over, and the days of financial stability comes with the tools available. Find a calculator that is right for you, determine the amount you should pay, and make your payments on time.

Why Missing Credit Card Payments is Never a Good Move

Why Missing Credit Card Payments is Never a Good Move

While making late card credit payment may not be a major concern for some cardholders, card companies will not hesitate to charge you with various fees for missing your credit card payments. What can possibly happen once you skip your payments?

One: The most obvious consequences are you will be required to pay a late fee. You can expect to pay $15 to $35 for making late card credit payment and will continue to pay these amount each month that your payment is late.

Two: Aside from the added fees, your interest rates are likely to skyrocket. These rates will normally increase to default rate, which is the highest possible fee that any card companies can charge legally. The higher the interest rates, the higher the fiancé charges. This will not only make it more expensive for you to carry a balance, it could also contribute to greater credit debt.

Three: If your card company applies universal default clause in the card agreement, you can expect other credit interest rates to increase as well.

Four: If you think missing credit card payments will not tarnish your credit history for a long time you are mistaken. In fact, once you are more than 30 days behind on your payments, your credit bureau will be notified. Your inaction will be recorded on your credit report and will stay there for seven years!

Five: Know that any late card credit payments can have grave effects on your credit score. Your score will plummet because the payment history makes up about 35% of your credit score. In turn, this will affect you once you try to obtain new cards in the future.

High interest rates and late fees are only two of the consequences that cardholders will face once they miss out on credit card payments. However, the effect that you want to avoid at all cost is hurting your credit score. Know that the calculations for credit score do not treat late payments the same way all the time.

Although 30 or 60 days late payments can have detrimental effects on your score more in the months that they occurred, they are likely to affect your score as time goes by. On the other hand, if you are behind payments for 90 days, your credit score will dip, particularly if this occurred within the past 24 months.

Action Needed to Lower Credit Card Payments

Action Needed to Lower Credit Card Payments

Your monthly credit card payments are likely increasing if you are like most Americans. You may find it difficult paying down debt balances as your finance charges eat away at most of your monthly payments.

Source of Higher Payments

These monthly payments are increasing as your debt balances increase. They are also increasing as a result of higher interest rates being levied on your credit card accounts.

If you do not respond to these increases, you will continue to experience more severe financial woes as a result of your crushing credit card debt. In other words, you may soon discover that you can no longer afford your ever increasing monthly credit card payments unless you take action soon.

How to Lower Monthly Credit Card Payments

There are only 2 ways to lower your monthly credit card payments that keeps your credit rating intact.

Overpay on Monthly Payments: If you pay well above the monthly required payment, then your minimum payment requirements will begin to drop in subsequent months. This requires that you send in well above your minimum payment requirement and stop using the cards for purchases.
Receive Credit Counseling: There may be substantial intervention that a credit counseling organization can provide, if you act soon enough. Major credit card issuers participate in debt management programs by providing interest rate reductions and lower monthly payments to those enrolled in the program. Your ability to obtain these benefits depends on which creditors you owe and your status with those creditors. This is a needs-based program that can help you get the lower payments you need provided your situation demonstrates financial distress.

Finding out a Lower Payment

Prior to enrolling in a debt management program, credit counselors can provide you with a good faith estimate of what your consolidated monthly payment likely will be. They can also help you develop a workable budget that allows for living expenses while helping you meet all monthly obligations. Their quote can also estimate the interest savings that you can reasonably expect on a debt management program.

The ability of credit counseling to lower your interest and reduce your monthly credit card payments depends on the status of your accounts. Current status is preferred, but even late payments can normally be remedied through re-aging benefits available through debt management programs.

Charge-offs however cannot be easily cured. Collection agencies do not provide traditional benefits through credit counseling. Therefore, you should consider acting before your accounts are charged off and turned over to collections. By then, it could be too late!

Benefits on Online Credit Card Payments

Benefits on Online Credit Card Payments

Credit card payments for the sale of a product or service on a website or any online transaction is the most common form of payment over the Internet. Online payment through credit card gives convenience for both the business and the customer. It saves them a lot of time and hassle and transactions can be done anywhere and anytime. There are many benefits and advantages for a business to have an internet merchant account.

Having an internet merchant account helps them boost sales up to 75%. Almost everyone has and pays with a card. And since credit cards are the most common online payment method, it makes sense for any merchant who does business online to have a credit card payment service. It also gives the customers an easier time to pay for the products and services, so encourages them to purchase especially on impulse. Transactions can easily be made with just a click of the mouse. With the Internet, market reach is global and exponential versus the market reach if your business is just land based. Merchants’ businesses will also be able to take orders and transactions 24 hrs a day, 7 days a week and 365 days a week since this service eliminates the staff needed to take the transactions. They also don’t need to monitor the online credit card payment process so they can focus on the other areas of their businesses.

Online payment through card is also very cost effective. Since merchants can do online card processing, they don’t need to go to the banks anymore to make deposits. This saves them time and transportation costs that they can use for other areas and activities of their business. And it’s not only the merchants that save on time and transportation costs but the customers as well. Customers can access the companies’ products and services anytime from home or where ever they need to be. Even customers from far places and even different countries can avail of the products and services and they can pay without needing to be physically present anymore.

Many other entities and organizations utilize online card payments and not just businesses offering products and services. People supporting charity organizations and causes can donate money using their cards. These groups are usually international, so people from different countries who’d want to help can easily contribute this way. Politicians raising funds for their campaigns and activities can also accept contributions through credit card payment systems.