The first universal credit card was invented in 1950 . Credit cards have become much more popular since then. Today, they are indispensable for making and receiving payments.
But how can you safely accept credit cards in 2023? Many frauds and scams occur via credit card payments. It is important to be aware of these scams and what you can do to avoid them.
Keep reading and learn more about where you should start below.
Apply for a Merchant Account or Payment Processing Service
The first challenge of credit card acceptance is applying for a merchant account. A merchant account is usually necessary for accepting payments as a business. You may also go through a payment service provider.
The option you choose will depend on your business and what you believe to be the best option. A merchant account is a type of bank account that you can use for your business. You would need to get this account from a bank or a similar provider.
You would also need the right software to accept credit card payments in this fashion. If you don’t want to go through all this, you can go through a payment processing service instead. There are many processing service options like PayPal or Square.
These services work very similarly to merchant accounts. You can also manage their settings online. This ensures that the payments go through exactly how you want them to.
This makes it easy to deposit money into your bank account, issue refunds, and so on. If you are a new business and still very small, it may be best to choose a payment processing service. This is because these services are very simple to use and don’t require much information to get set up. They are also quite safe.
If you are a larger and more established business, it may be better to get a merchant account. These accounts are more detailed and have sturdier foundations.
You should also be aware of credit card processing fees when you choose a provider. Every provider is different. Some may charge a monthly or annual service fee for credit card transactions.
Others may instead charge a transaction fee or interchange rate every time you process a credit card. This fee may be fixed or it may be a percentage of whatever payment goes through. Understanding these different options is important for making the right option for you and your business.
It is also important for safely accepting credit card payments. Some credit card processors have extra security measures designed to keep you and your information safe. Knowing these options ahead of time can keep you safe from fraudulent payments and other scams.
Accepting Online Payments
Accepting online payments safely is tricky. This is because many things can go wrong when accepting payments online. Most credit card processing services ensure that this process is as safe as possible.
But there is still a chance that something could go wrong or that you could get scammed if you’re not careful. Make sure that your payment provider is properly linked to your storefront. This will make payments straightforward for your customers.
It is important to review the customer’s payment information before proceeding. There are certain things you can look for that might give you a sign as to whether there is fraud afoot. The best credit cards to accept are those from well-known and respected banks.
Premium credit cards are also good choices. This is because people who use these cards are very responsible with their money. It would be very unlikely for people with these credit cards to try and do anything shady.
What You Need to Know
You should be wary of credit cards from very small and unfamiliar banks or banks that have a bad reputation. These credit cards may not be as legit as they seem. You should also check the basic payment information such as the billing and shipping addresses.
If these two addresses are very far apart, this may be a sign that you’re dealing with fraud. This is not always true, but it is important to be cautious if you feel unsure about payment.
Other Factors to Consider
Accepting mobile payments is very similar to accepting online payments. You need to use a mobile app to do this. The great thing about accepting mobile payments is that you can accept them wherever you might be.
But you still need to be careful when accepting mobile payments. Most people use a payment processing service when accepting payments this way. This is because it is simpler and faster.
Mobile payments are good for accepting payments at farmers’ markets, trade shows, and so on. But you may want to avoid mobile payments for high-risk items. High-risk items include cannabis, firearms, and similar items.
These items are harder to accept payments for because some banks won’t provide their services for high-risk businesses . If you have a high-risk business, it would instead be necessary to find a payment processor that would accept your business.
This can also keep you safe and secure when processing payments online or otherwise. This will allow you to rest easy when processing payments.
How to Accept Credit Cards Safely
Learning how to accept credit cards safely is a delicate process. It is important to be aware of every step of the process to make sure that you don’t fall into a scam. Having the right payment processing method on your side will help.
To learn more about how it works, check out our processing options .
Table of Contents
- - Apply for a Merchant Account or Payment Processing Service
- • The Details
- - Accepting Online Payments
- • What You Need to Know
- - Other Factors to Consider
- - How to Accept Credit Cards Safely