Setting up a credit card processing system for your business is incredibly important – not only will it allow you the opportunity to broaden sales, but also the money is directly deposited into your business bank account. Plus, many businesses are finding the convenience of mobile payment processing, which is making it easy to step away from the register to take payments. If you travel to trade shows, you can offer your product or service from anywhere and still get paid. If you own a restaurant, servers can now process patron credit cards right away, thus eliminating the time it takes to pick up the card, swipe it and then wait for the patron to sign. Here are some of the basics of setting up credit card processing for your business.
- Make sure that you have an employer identification number. Before anything, you want to sign up for an EIN number – otherwise know as an employer identification number. Before you can set up credit card processing – and before you can set up a business bank account – you will need this number.
- Sign up for a fictitious business name or an LLC. It is also important to sign up for a fictitious business name or LLC. A fictitious business name is simply a business name that goes along with your sole proprietorship or limited partnership. You are required to post information about your business in the newspaper for up to five days and you are required to pay a small fee. If you want to set up a corporation, you will need an LLC or limited liability corporation.
- Set up a bank account for the credit card processing system. Once you have your EIN number set up and your business structure in order, you need to open a business bank account. This account must be totally separate from your personal finances and the name on the account must be your business’ name. When it comes to setting up payment processing, you must have a bank account for the money to be deposited into. When it comes down to it, you may want to have two bank accounts – one for taxes and one for cash flow purposes.
- Review different payment processing companies. After you set up your bank account, you want to review different payment processing companies. When it comes down to it, different companies will have different rates and policies. Moreover, some payment processing companies may be more conducive to certain industries. Ideally, though, you want to find a company that doesn’t have steep rates – you don’t want to cut into your profit margin every time you swipe a credit card.
- Set up mobile access for your credit card processing system. One of the greatest benefits of smartphone and tablet technology is that you can set up mobile payment gateway access. Once you find a payment processing company that you would like to work with, you want to inquire about applications and devices that you can integrate with your smartphone or tablet. In the end, being able to take credit cards remotely will be incredibly advantageous and convenient.