Credit Card processing for small businesses is an essential factor since it has been reported that 3 out of 10 adults use credit card payments. If you’re looking for credit card processing for your small businesses, then look no further. Oceanpayment is the best payment gateway for small businesses that provides credit card processing for small businesses
Credit Card processing for small businesses means that all the payments transactions are made through credit cards. Nowadays, even small businesses also provide credit card payment processing and the best payment gateway for small businesses services to their customers. There are six key players involved in credit card processing: Customers, Merchants, Acquiring Bank, Payment Processor, Credit Card Network, and Issuing Bank.
In this article, we will talk about how Credit Card processing works? And why Credit Card processing for small businesses is important? And what is the best payment gateway for small businesses?
Steps of Credit Card Processing
Usually, there are free important steps involved in Credit Card Processing for small businesses. These are authorization, settlement, and funding.
Authorization:
This is the best payment gateway for small businesses where the cardholder or customer provides their card details to the merchant, and the merchant sends payment requests to the card network for a transaction. Once the issuing bank accepts the payment request, the customer can pay the bill. However, if there are insufficient funds or the account has already expired or closed, the issuing bank sends a message regarding the account’s status to the merchant bank.
Settlement:
When doing Credit Card processing for small businesses, the issuing Bank receives a request for the payment. It checks whether the customer’s account has sufficient funds or not. If they have sufficient funds, the amount gets deducted from the customer’s account.
Funding:
This is the last step for any Credit Card processing for small businesses. Here, the issuing Bank transfers the money from the customer’s Bank to the merchant’s Bank and then the money goes to the merchant’s bank account.
Is Credit Card processing for small businesses important?
The answer to this question is yes. Credit Card processing is the best payment gateway for small businesses. Large companies have more budget and influence to attract and retain customers. But small businesses and startups do not have that luxury. That is why they need to provide more customer services to enhance customer experience. Credit Card processing for small businesses can help to improve the quality of customers’ experience.
If your business offers multiple payment options and the best payment gateway for small businesses to the customer, it can help your business to grow even further. 83% of the small businesses saw that accepting credit cards have increased their sales. Accepting Credit Card processing for small businesses is the best payment gateway for small businesses since 52% of the small businesses found an increase of $1000 in their monthly sales. At the same time, 18% of them saw a $20,000 increase in their monthly sales.
Also, customers tend to spend more money on credit card purchasing than paying in cash. Many customers think that Credit Card processing is more secure than real cash payments. That is why Credit Card processing for small businesses is so necessary. It is the best payment gateway for small businesses to reach a global customer base.
If you are confused about which service provider can give you the best payment gateway for small businesses, then you are in the right place. Oceanpayment is a global digital payment solution provider that provides Credit Card processing for small businesses, including customized payment solutions based on your needs. With more than 500 payment options to choose from, Oceanpayment is the best payment gateway for small businesses. For more details regarding the best payment gateway for small businesses, go to https://www.oceanpayment.com/
Nowadays, customers are more tech-savvy than they were a few years ago. So, it makes sense to offer them all payment options possible to secure a purchase. Credit card processing for small business has now become a necessity as a Pew Research Center study showed that 3 out of 10 adults do not make cash payments.
With so many people opting for cashless purchases, it is about time you invest in the best payment gateway for small business to give your venture a boost.
Oceanpayment is a reliable solution in this regard, offering payment services to scale your business on local and international levels. We discuss it in detail below.
Why is Credit Card Processing for Small Business Vital?
Large businesses can do a lot to attract and retain customers since they have huge budgets and influence. However, smaller businesses do not have these privileges, so they need to amp up their customer service for consumer retention.
One way to do this is to offer multiple payment options, such as credit card processing. Intuit, a financial software firm, found that 83% of the small businesses saw an increase in sales when they started accepting credit cards.
Of these, 52% of the small businesses saw an increase of $1000 in their monthly sales. Meanwhile, 18% of them had a $20,000 increase in their monthly sales.
Moreover, when customers are using their credit cards to make purchases, they tend to spend more than they would if they were paying in cash. Why is that? The simple reason is that they are not limited by the cash in their wallets.
Credit card processing for small business takes the front seat in situations where a merchant wants to give their venture a facelift. It can also help broaden your customer base, allowing you to offer your products and services internationally.
What Is Credit Card Processing?
Credit card processing simply refers to processing payments made through a credit card. If your business offers credit card processing, it means that you accept credit card payments from your customers.
Parties Involved in Credit Card Processing
Today, we have such high-end technology that a payment made through a credit card can be processed in a matter of seconds. But the process is not conducted by one person only. The following parties are involved in credit card processing from start to finish.
Customers
Customers are the cardholders who purchase something from your shop. They will use their credit card to pay for their cart at the checkout.
Merchants
As a seller, you are the merchant. A merchant basically refers to a business selling goods or services to the customers while offering them credit cards as a payment method.
Acquiring Bank
The acquiring bank is the merchant’s bank. This bank is responsible for connecting the cardholder’s bank to the merchant.
Payment Processor
The payment process offers the infrastructure for the merchant to accept different payment types, such as credit cards. It is normally a third-party company that may or may not be affiliated with the acquiring bank.
Credit Card Network
Visa, Discover, Amex, and Mastercard are the four main credit card networks. They receive the payment details from the processors and forward the payment authorization requests to the issuing bank of the customer.
Issuing Bank
The issuing bank is where your customer has an account. The bank receives a request to authorize the payment. It does so if the customer has sufficient funds in their account.
Credit Card Processing Steps
Typically, there are three steps in credit card processing; authorization, settlement, and funding. Here is a breakdown of these steps:
Authorization
In this step, the cardholder or customer gives their card details to the merchant. The merchant’s payment processor sends a request to the card association or card network for the transaction. The request goes to the issuing bank.
The issuing bank accepts this request if the cardholder has sufficient funds. If the funds are not available, the request is declined. If the account is expired or has closed, the request will not go through.
The issuing bank then sends the status of the request, approved or denied, to the card network. The card network forwards this status to the merchant bank.
Settlement
When the issuing bank receives the request for a transaction, it checks for the funds in the cardholder’s account. If there are enough funds, the amount is transacted from the customer’s account.
Funding
In the last step, the issuing bank transfers the amount from the cardholder’s bank to the merchant bank. The merchant’s bank then deposits these funds into the merchant’s bank account.
Oceanpayment: Best Payment Gateway for Small Business
Offering credit card processing for your customers can be difficult if you do not have a reliable payment service provider by your side. Oceanpayment is a global digital payment solution provider with a goal to simplify global payments and improve global customer retention for small businesses.
With more than 500 payment options, Ocean Payment is a simple, convenient, and safe solution for all your payment needs. Do you have any specific requirements that are particular for your industry? That is no reason to worry.
Oceanpayment offers customized payment solutions based on your industry needs. As for credit card processing, the company constantly enhances its global payment solutions.
Since Oceanpayment has strategic partnerships with the largest credit card organizations around the world, you can offer credit card processing to all your customers, irrespective of their geographical locations.
You can accommodate customers with the following credit cards; Discover, JCB, UnionPay, Diners Club International, American Express, VISA, and Mastercard.
Conclusion:
Whether you are operating domestically or internationally, it is important to choose the best payment gateway for small business if you plan on offering credit card payments in your online venture.
A robust gateway does not only enhance payment processing but also facilitates swift and safe payments that further increase customer loyalty. Get in touch with Oceanpayment today to learn more about the standard and customized payment solutions.
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