Virtual Credit Card Processing And What It Means for Your Business
So you’re a small business owner, and your store (online or off) is completely in line; everything seems to be in order – your inventory is spot-on, your employees are paid, and you’re even pulling in some decent revenue. But what about virtual credit card processing? Is it worth it with all the fees associated?
It has much to do with the contract terms you signed on for when you chose a virtual credit card processing service. Accepting credit card payments from customers can, of course, mean a lot more money for your business. But understand all the fees involved, and ensure you get the best possible deal on virtual credit card processing for your business.
Virtual credit card processing typically involves four basic phases: the customer’s card is from a bank. A card company issues it, and there’s frequently a third party clearing the deal, and then your bank must actually receive the money.
The fees for credit card processing – equipment, set-up fees, and much more can be as much as a thousand dollars. Many companies that provide virtual credit card processing will absorb fees and even their virtual credit card processing services to get a sale, but be cautious.
A merchant account today – especially one that provides virtual credit card processing – is vital to small businesses, but choose wisely. Some contracts favor businesses that process thousands of small transactions, like fast-food vendors, while others will be better for lower volume, high priced goods, like an electronics store. If you happen to agree to a low transaction rate for your virtual credit card processing, additional fees you might not even notice for seemingly ridiculous things could show up out of nowhere, so investigate the contract thoroughly, and ask any questions you may have of the representative before signing up for virtual credit card processing.
Using a point-of-sale device – a P.O.S. – is not actually a real-time action. Typically, through batches and other means, your money processing is days away, and the card might even bounce. Virtual credit card processing uses the Web to accept credit cards and charge while your customer is still there. This type of merchant account is especially convenient for automated sales online.
Call Vision Payment Solutions today, and experience a new level of virtual credit card processing for your business!