Small Business Credit Card Processing

One of the biggest decisions owners of small business have is determining which credit card processing option is best for them. Small businesses can be anything from freelance photography to courier delivery. Most anything can be turned into a small business and this is one of the biggest reasons that owners have to understand the options available to them, how they work and determine which options may be right for them.

Home-Based Business Credit Card Processing Options

With technology developing and advancing every day it is more important than ever for a home-based business to have the equipment, know-how, and options available to accept and process debit and credit cards as well as other electronic options like e-checks or PayPal transactions. As the per person debt to income ratio rises and the economy continues to experience a decline, accepting personal paper checks is a huge risk for a small businesses of all types. There are many low to no cost solutions that can help.

Online Credit Card Processing

Developing a web site can be a hurdle for some small businesses and can involve some cost, but the ability for customers to pay for goods and services in an online checkout can quickly make up the difference in the amount of business that will be brought in.

There are many tools out there for ambitious small business owners to create their own websites. While this is a viable option, be aware of the image your website will create and if customers trust you with their money, you will want to make sure that the electronic check-out and cart are set up appropriately and are secured and protected against hackers. Having someone else create your site can be as little as $100 and can go up from there—depending on the quality and options you would like to have available.

Online credit card processing can be set up for prepayment or post-payment for services and does not always involve a shopping cart. E-checks, PayPal and other electronic payments systems can be set up that allow you to send invoices and bills as well as collect payments.

Wireless and Mobile Credit Card Processing

Many small businesses require travel to a client’s home or other location to complete a service or deliver goods. The ability to accept payment upon delivery of that good or service on the spot is invaluable in being able to collect funds. Default on payments owed is another of the hurdles that a small business must undertake and the solution is having the best defense possible.

Wireless transaction terminals or mobile POS devices can be taken with you when you’re on the go. These devices are similar to the electronic boards you have to sign when mail deliverymen hand you a package—signature required. These devices work instantaneously and have an immediate funds transfer—no hassle involved. While these units may incur a cost in the beginning, the opportunity for savings in the future is immeasurable.

Mobile applications for your cell phone, like an iPhone, can also be downloaded that allow you to process debit and credit cards directly from your phone, mobile tablet, or other media packaged device. Both mobile credit card processing and wireless credit card processing can be used at trade shows, expos, booths at a fair, or even small in-home parties. If you conduct a lot of business away from home, one or both of these options is a must!

Examples of Home Based Businesses and How They Process Credit Cards

One of the things that should be considered when deciding on payment options, is who your clients are. Many small home-based professionals are independent contractors that work for other businesses like motivational speakers or presenters, buyers for government projects, and private sector service bids (marketing, design or sales for a specified project only). These types of small home-based businesses may still be able to accept debit or credit cards as payment, however most credit card processing options are mainly for those businesses that accept debit or credit cards as payment for goods or services offered on a consistent basis.

While there are many different types of small businesses, here are a few examples of businesses that are home-based and which credit card methods are most commonly used:

• Photographer
  Freelance photographers will often collect payment for a sitting fee before the shoot begins, when prints are ordered or at final pick-up. One of the most convenient methods is to send electronic bills and invoices and provide a way for these to be paid electronically as well. This can be done through electronic payment systems such as PayPal. However, this option generally does not work for the photographer who collects payment at the time of service, so, having a portable device—whether a cell phone application or a wireless POS terminal—is really handy and can avoid a lot of stress and hassle.
  
  
• Party Host
  Some examples of party host businesses include Pampered Chef, Scentsy, and Lia Sophia to name a few in different fields. These party planners visit the homes of their clients who have invited others to come to see the merchandise and experience the products in action. Orders are accepted at the party and can be handled in multiple ways. Credit Cards can be taken on the spot with wireless terminals or mobile devices, or they be taken on an order form to be processed at a later date.
  
  
• Landscaper
  A landscaper is generally more than the boy next door that comes over to mow your lawn. His or her services are often used to design the landscape of business offices or the landscape surrounding a personal home. These professionals then help those designs become realities by sculpting the scenery with flowers and trees, yard props, and a variety of paving or curbing. Wireless terminals and mobile devices seem to work best for this type of service.
  
  
• Home-Based Jewelry Designer
  Jewelry designers will often make their pieces to be placed on their own business web sites or they place their jewelry for sale on bidding sites. The two easiest methods for a jewelry designer to process payments is through online credit card processing and a virtual shopping cart on her site or to send electronic invoices or bills to be paid electronically by the client at the time the order is placed.