A Step-By-Step Guide to |
One of the most important steps in enrolling new clients is being able to receive their payment. This seems so obvious, but many small business owners actually make it difficult for their new clients to pay!
For example, some business owners only accept payments through PayPal. What happens when if your client takes a long time to make payment to your PayPal account? You’re making it easier for the client to change their mind and say no.
Many other business owners only accept checks. There’s one big problem with this - sometimes your clients lose their enthusiasm while they are thinking about writing the check. And then you receive the dreaded email that they changed their mind.
Here’s the thing: being able to accept credit cards makes your service-oriented business more attractive to many customers, because it is a convenient and commonly-used payment option. It also creates an impression of a professional and established business.
So in short - I highly recommend that you accept credit cards (and debit cards) in your business.
Benefits To YOU Of Accepting Credit Cards
You may not realize the many benefits that a small business owner like you can receive by allowing your clients to pay by credit card, such as:
- Convenient - You can automatically bill clients every month, saving time
- More secure - Safer than keeping cash in your office or accepting checks that can bounce, with a record of each transaction
- Improved cash flow - Clients are less likely to change their mind later if they give you their credit card information upfront
- Professional appearance - Customers are more likely to trust a business that accepts major credit cards
- Gives customers a choice - Your clients are more likely to sign up with you if they can select the payment option that works best for them
However... while using a credit card is simple for your clients, learning how to accept credit cards can be a confusing process.
This step-by-step guide is designed for you if you are a coach, consultant, holistic practitioner, or service-oriented business owner who is looking to start accepting credit cards or just understand credit card processing better. Read on for a helpful overview of how to get started and the solution we recommend for our clients.
Step-By-Step Credit Card Processing: IN-PERSON AND
TELEPHONE TRANSACTIONS
For service providers that meet with clients in person or over the phone, you can start accepting credit cards without setting up a website. This is convenient for your customers since they can show you their credit card or read you the numbers on the phone. It also allows you to start processing credit cards sooner, without having to create a website.
What you’ll need to accept credit cards
- Merchant Account: A type of bank account where credit and debit card payments get deposited
- Virtual Terminal: Like a digital credit card swipe machine, this system allows you to input credit card information on your computer.
- Gateway: The connector between your online store and the bank, which sends payment information securely to be approved or declined.
How It Works Step-by-Step
- When a client calls you or provides their credit card information in person, you log in to your virtual terminal and select the products or services the client is buying. You enter their credit card information.
- The payment information passes through the secure payment gateway and is transmitted to the authorization source.
- The bank that issued the credit card receives the transaction information, checks if the funds are available, and approves or declines the release of payment.
- The payment gateway “tells” you if the payment was accepted or declined.
- If approved, funds are deposited into your bank account in 2-3 days.
Step-By-Step Credit Card Processing: ONLINE TRANSACTIONS
If you have a website or want to sell products/services online, accepting credit card payments is a key feature your customers will be looking for. There are a few extra steps to set up if you want to do your credit card processing online, in addition to in person or over the phone.
If you want to accept credit cards online, you’ll need:
- Merchant Account: A type of bank account where credit and debit card payments get deposited.
- Virtual Terminal: Like a digital credit card swipe machine, this system allows you to input credit card information on your computer.
- Gateway: The connector between your online store and the bank, which sends payment information securely to be approved or declined.
- Website: Describing your business’s products and services
- Shopping cart: System on your website that allows users to enter their credit card information to purchase products or services. The payment information is encrypted and sent through the gateway to the merchant account.
How It Works Step-by-Step
- The user visits your website, adds products or services to their shopping cart, and enters their credit card information to pay.
- The payment information is sent automatically to your virtual terminal.
- The payment information passes through the secure payment gateway and is transmitted to the authorization source.
- The bank that issued the credit card receives the transaction information, checks if the funds are available, and approves or declines the release of payment.
- The payment gateway “tells” your website and the user if the payment was accepted or declined.
- If approved, funds are deposited into your bank account in 2-3 days.
Step-By-Step: ONLINE SHOPPING CART
Online shopping carts are not just for large websites like Amazon.com; any small business can set one up. Besides just allowing your customers to buy more than one product or service at a time, a shopping cart can also give you powerful tools to increase your sales.
Benefits of a shopping cart for your business...
- Sell products or services online - Gives you the ability to offer one-time or recurring purchases
- Easily set up - Helps you to get started quickly
- Marketing tools - Allows you to send email newsletters, send automated or autoresponder emails, and create coupon codes
- Create reports - To help you report and analyze customer and sales records
- Customizable look - Change the colors and design of the shopping cart to match your existing website
How It Works Step-by-Step
- In the control panel of your shopping cart, you create the product and enter details about it, including name, description, and price
- The shopping cart generates a product link (URL) that you can add to your website as the link for when a customer clicks the “Buy Now” button
- When a customer clicks the “Buy Now” button, they are taken to a secure online form to enter their payment information and submit
- The transaction is sent through your payment gateway and approved by the customer’s credit card provider
- The shopping cart notifies the customer of the successful transaction and a confirmation email is automatically sent to the customer
A Recommended Provider
Our clients frequently ask “which credit card processing company are you using?”, since there are so many companies to choose from.
For the past 5 years, we’ve used DirectPay (formerly known as Practice Pay Solutions) as our payment service provider. Their services combine a shopping cart, merchant account, payment gateway, and virtual terminal. You can learn more about their options for credit card processing at DirectPay's website.
We recommend DirectPay because they have a convenient all-in-one solution that bundles together the key services you need to accept credit card payments. This allows you to get up and running more quickly with only one company to work with rather than several. We’ve found that they also offer competitive rates on credit card processing compared to other options (such as PayPal).
For full details on the services that DirectPay offers small businesses, check out the DirectPay website.
All the best,
Bill Baren
Founder and President, Bill Baren Coaching