Credit cards are the most popular and acceptable form of payment today. Hence it is very important for small business owners to set up credit card terminals or point of sales terminals in their place of work. This extremely necessary hardware can either be purchased or leased from the credit card provider as per the convenience of the business owner.
Payment types to be accepted
Before going in for any of the various credit card terminals for small business, it is very important to decide on the types of payment you want to accept. The different types of payments generally accepted are:
- Debit cards: The use of these cards will incur a transaction fee will also warrant the use of PIN pads which can be
- Internal wherein the customers will have to access your terminal for entering the PIN and
- External which are handheld wireless pads which your employee will have to take to the customer.
- Electronic cheque conversions: This involves scanning the MICR code on the cheque and also keeping a snapshot of the same for record keeping. Even though processing cheques electronically takes lesser time, the device or the cheque reader required is quite costly. It has other advantages like
- Faster deposits,
- Immediate intimation of rejected cheques,
- Automatic record keeping etc.
- Loyalty cards: These are generally given to customers for sales promotion and a general POS terminal will need to be customised to accept these cards.
- Smart cards: These cards have an integrated chip on them which need to be read by the POS terminal. Hence the POS terminal set up should have this feature integrated in it as these smart cards are being increasingly used to avoid card scams.
- ATM cards: Even though the names debit cards and ATM cards are used synonymously, they are actually not the same. ATM cards have the facilities of both debit and credit cards and are specifically recognised by the logo of either the MasterCard or Visa on them.
- Electronic benefit transfer or ETB: The process of using these is the same as debit cards. Customers using food stamps and or benefits related to cash welfare generally fall under this type of transfer. Here also a PIN needs to be entered for the transaction to be a success.
Irrespective of what payment types you select, it is always better to have the option for the other types of payments. This ensures that customers with all types of payments can be catered to thereby increasing the business volume.