ACH And Credit Card Merchant Processing For Small Business – An Overview
Small businesses are the backbone of any economy. No matter whether we talk about the United States, European Union, Asia or any other part of the world. Small businesses contribute as a more substantial portion to the national economy. Traditionally small firms have accepted payments in the form of cash. As the world is moving towards cashless transactions most of the small businesses have started adopting newer methods of payment modes.
ACH For The USA And Non-USA Based Small Businesses.
Businesses can accept payments directly from customers bank account by using ACH payment processing. To get this solution the small business must register with third-party ACH payment processing company. These third-party ACH payment processing companies request small business to send documents as well as merchant account application. These documents include the KYC documents like
- Business license
- Utility bill
- National ID
- The address proof of the directors
- Cancel cheque of the business bank account
- Business plan
- URL of the website
Once the small business sends these details to the ACH payment processing company, then the underwriting team evaluates the application and identifies the risk profile. Most of the times for small businesses third party payment processing companies can quickly approve the applications. Sometimes applications may get declined if the risk profile of the small business is bad. This is the time when merchants need solutions from high risk processing banks. With ACH payment processing small businesses can accept transaction over the website and also over the phone. They can take orders over the phone because ACH comes with the virtual terminal. There are multiple features of ACH payment processing. Many features can be used by implementing ach payment processing api on merchants website. Simple features include sending responses to the merchant and buyer. Small businesses usually pay a lesser transaction fee in comparison to credit card processing. ACH approvals are faster than credit card processing. Many industries are almost on the verge of getting banned by card schemes because of high Chargeback to sales ratio. These industries are able to fight the challenge by using ACH and echeck solution. By far echeck has been the best payment gateway for tech support industry. Apart from Tech support, ACH is widely used in other industries like.
- Precious Stones and Gems
- Expensive watches
- Water Filters
- Cruises and Charter Flights
- Crypto Currency
- Massage Parlours
- Escort Listing Websites
- Adult Industry
- Fantasy Sports.
- Chat Lines
Most of the time ACH payment processing companies offer solutions to merchants with bad credit. Merchants who are terminated for credit card processing or are listed as TMF merchants can also get ACH payment processing options.
ACH & Credit Card Merchant Processing for Small Business -Application Process.
These days small enterprises also sell product and services online. If the small business has a website, then it needs a credit card merchant account. To get a credit card merchant account for your small business, you will have to send an application to a Credit card payment processing company or an acquiring bank. The application process is almost similar as mentioned above for ACH payment processing.
Features of Online Payment Gateway or Merchant Account for Small Business.
Online merchant account for small business generally come with API integration that means a merchant can connect the payment gateway to the business websites. Some Payment processing companies offer readymade plugins that can be used by the merchant to integrate the solution quickly. Customers can soon make payments by using their favorite credit and debit cards. Sometimes these gateways can also accept the prepaid debit card and gift cards. The rate of the transaction(MDR) is usually decided on the case by case basis. Credit card processing companies or merchant account acquirers look closely at the creditworthiness, recognition of the small business and the profit and loss statement.
Retail Credit Card Processing For Small Businesses
Small businesses across the United States, European Union, India and other locations use retail credit card terminal. These credit card terminals are sometimes also known as EDC machine or point of sale terminal. The technology is evolving very fast in the retail Credit Card processing, and that is why small businesses are required to upgrade to newer machines. Previously, the magnetic strip terminals were found everywhere then credit card acquiring institutions implemented chip-based credit cards. In today’s scenario, most processing companies and credit card issuer prefer contactless card. These cards may not have the credit card number printed on the front, and the customer is not required to hand over the card to the merchant. With NFC technology customers take the card closer to the terminal, and the transaction happens. NFC stands for Near Field Connectivity. It is a new technology that helps Credit Card processing companies in reducing fraud and chargebacks to a considerable extent.
Factors That May Help You In Getting A Reliable ACH & Credit Card Merchant Account Processing Solution For Your Small Business.
When you apply for a credit card merchant account or an ACH payment processing for your small business, you must look at these factors.
The reputation of the processor: There are thousands of websites on the Internet offering credit card payment processing solutions. Out of these thousands of website, not every site is owned by an acquiring institution. Resellers like us own many websites. It is always a grand strategy to approach the acquiring institution directly so that you get their rates. The more parties you involved in your application process, the more money you will be paying.
Now we have discussed the reputation of the processor and why you must approach the acquiring institution directly. Let’s look at the second factor.
Transaction fee: The transaction fee also varies depending upon processor to processor. As a small business, your priority should be to get a reliable and effective solution with the lowest transaction fees. This can be easily achieved when you compare the pricing of different processors. Once you get the pricing from multiple payment processing companies, then you will be in the better position to evaluate the best solution for your business.
Billing and Technical Support: The third and the most critical factor is the support. You should work with the payment processing company that offers 24/7 support. The payment processing company that provides maximum support channels including support by phone, support by email and support by chat is probably the best solution for you. You are running a small business you would be interested in getting support 24/7. You are not interested in losing transaction just because your online payment gateway or card terminal is not working. Getting reliable support at the right time helps every business to succeed. For your small business if you’re looking forward to getting an ACH payment processing or a USA echeck payment processing or if you are interested in getting a credit card merchant account for online payment or retail payment. We will request you to send us an email. Our team will try to identify the best possible solution and send these recommendations to you.
If you want, we can also get pre-approval for you. If we get a pre-approval from the Credit Card processing company then the chances of you getting approved increases. For pre-approval, you do not have to send all the documents. All we need is the URL of your small business so that we can address this to the payment processing company. The payment processing company will look at the website and will identify if this business model may be supported or not. If we get yes for the pre-approval, then we move to the steps two, sending the documents of your small business to the merchant account processing company. Send us an Email on [email protected], and we will be happy to evaluate the best possible Credit Card processing options for your small business.