Credit Card Machines - Links

Credit Card Processing. There are several factors to consider when setting up a credit card processing system for a new retail or internet business. The first step is to set up a merchant account via a merchant account service. Such services act as intermediaries between you and the credit card companies. If you are a retail business, you will need to purchase a processing terminal through which credit cards will be physically swiped. Such terminals can cost anywhere from $100-$1000, and can be purchased via merchant account services or else independently. Finally, you will need to be sure that your POS (Point of Sale) system is properly set up to interact with the credit card terminal. User manuals or else your merhcant account service can usually help with this.

Transaction Rates. Keep in mind that each time a purchase is made, there is a cost to you, the retailer. Rates for internet transactions are generally in the 2-3% range, while brick and morter transactions carry a small per purchase fee and rates in the 1-2% range. If you chose to accept debit cards, this will save both you and the consumer, as these rates are lower still.

Merchant Accounts.   A merchant account is a bank account established by a merchant to receive the proceeds of credit card purchases. By establishing a merchant account, the merchant bank agrees to pay the merchant for valid credit card purchases in exchange for the right to collect on the debt owed by the consumer.