There are several comprehensive steps to accept credit card payments without a merchant account. Many credit card companies process process merchant account transfers in batches every other day or on a weekly basis. Surely, when you have payroll coming up or have an invoice due, you need faster cash flow. Plus, there are many high risk merchant accounts that may be adverse for your industry. Fortunately, you can utilize third-party payment service providers to process your credit payments. As a finance manager, you’ll benefit from their simplified fee structure and timely payments. Keep reading to learn how to accept credit card payments without a merchant account.
Research Payment Providers
To start accepting credit card payments without a merchant account, you first need to research payment providers. There are many top third-party merchants to process your credit card payments. For example, some providers offer external hardware to insert into your mobile device, tablet, or computer. This POS system allows you to instantly take payments. Then, funds are transferred nightly into your business checking account. On the other hand, other providers specialize in online payment gateways to sell products to customers. With so many different options, it is imperative to research payment providers to find the one that will best support your business.
Compare Rates And Fees
As you research third-party payment providers, start to compare rates and fees. Begin by examining the different startup fees for two or three third-party merchants. Often, there are little to no set up fees. Next, you need to evaluate transaction fees. Most third-party providers charge a small percentage of the total transaction in addition to a small standard rate. For instance, one major company charges about 2-3% plus $0.30 per transaction. You should also inquire about reserve percentages. Some companies put a temporary hold on 5-10% of your transaction revenue for returns or charge backs. Ultimately, you need to compare rates and fees to determine what is most profitable for your business.
Consider Your Transaction Volume
Next, consider your transaction volume to accept credit cards in your business without a merchant account. Typically, payment providers charge a percentage fee that sits on a sliding scale. As your number of monthly transactions increase, your percentage fee usually decreases. Therefore, depending on your transaction volume, one provider may be more economical than another. If you expect your transaction value to be lower (about 15 per month), consider a provider whose scale is lowest at the top end. On the other hand, if you project high monthly transaction volumes, look for the lowest rates at the bottom of the scale. When accepting payments without a merchant account, it is critical to consider your transaction volume.
Set Up Your Account
After you have considered your transaction volume, you can set up an account with your preferred payment provider. Compared to merchant accounts, signing up for a third-party payment account is quicker and easier. It requires less documentation and you have a higher probability of application approval. Typically, this is because banks accept less risk than third-party providers. To set up your account, go to your chosen provider’s website. Here, they often have a link to the application. Certainly, it is much easier to set up a payment service account than a merchant account.
Integrate Your Payment Gateway
Finally, to accept credit cards without a merchant account you will need to integrate your payment gateway. Most payment providers have a set of step-by-step installation instructions for hardware and software. Importantly, when setting up an online payment gateway, you need a processor that coordinates well with your website’s UX. Plus, your processor should not slow down your website. Depending on your selected processing platform, you can add an integrated checkout or a simple button to your website. It is essential to integrate your payment gateway to accept credit payments without a merchant account or mobile merchant payment solution.
There are several comprehensive steps to accept credit card payments without a merchant account. First, you need to research payment providers to see which services are right for your company. In addition, you need to compare rates and fees. Moreover, it is essential to consider your transaction volume as well. Once you have completed these steps, you can easily set up an account with your preferred provider. Finally, integrate your payment gateway’s hardware and software to begin accepting income. Follow these steps to accept credit card payments without a merchant account.