Collecting Credit Card Payments for Techs

Maybe you’re just starting up and considering how you’ll take payments from customers. Perhaps you’re a veteran in the industry who has always preferred cash or check to any other payment type. Whatever the case, plastic is the preferred method for a lot of clients, for several reasons. It helps them keep track of expenses rather easily, keeps them from having to carry a wad of paper bills around to be dropped, forgotten, or stolen, and there are other benefits as well, depending on the card type and institution.

To cater to these clients, you’ll need to process credit card payments in one way or another. There is no ‘one size fits all’ solution to collecting credit card payments. There are many factors you can use, however, to determine what solution may be the best for you, and we’ll discuss a few of them to give you an idea of which direction you might want to go.

1. Volume

Each area is different when it comes to discussing volume. For some areas, most clients prefer to use their card rather than cash or a check. For example, in some communities, most businesses and clients would rather pay by check than any other method, so you need to discern for your region how much volume you’re going to see as far as credit card payments are concerned.

2. Speed

If you have a retail storefront, and a rather steady flow of customers, or are planning on having those things, you’ll want to be concerned with how quickly you can have those customers moving through your checkout terminal. Typing out all the credit card numbers while more customers are waiting and checking their watches could be a drawback to some systems, while others that simply require you to swipe a card and hit a few buttons may be what you need.

3. Investment

This variable is more of a concern to start-ups than established businesses. Obtaining your own credit card terminal for a few hundred dollars might be a questionable business decision at the moment, and you might be more likely to turn to payment processing systems such as PayPal just to start out with. If at a later time the other factors begin to weigh heavier on your decision, the investment of a payment terminal may be a good decision in the long run.

4. Risk

Using your own terminal has a bit of risk, though, depending on the features of the system. For instance, you’ll want to find out from the institution providing the system what kind of risks you’ll have regarding declined cards, chargebacks, or payment errors. Terminals with real time processing are less risky than those without it, so take that into account as well.

5. Mobility

For those who are out on service calls on a regular basis, have you considered a mobile option for accepting credit card payments? For instance, Square and PayPal both offer credit reader apps for your mobile device, and PayPal offers a free reader for those who sign up for the service. Of course, there is a payment processing fee, but if you need to accept credit cards on the run, this could be the solution for you.

6. Integration

If you’re needing something to integrate with your CRM system, you might want to look at payment enabled software. This enables you to take payments directly inside the software and then have a record of it in your CRM. If you would like the payment solution to track inventory for you as well, you might want to consider point of sale solutions, which include all the hardware and software necessary for swiping cards, printing receipts, and tracking inventory.

7. Flexibility

Many CRM software suites allow the recipient to pay online at any time of night or day using their credit card via payment processing system. If you often deal with clients who are so busy that they only have time to ask you to send them a bill so they can pay it when they have a moment, you might want to take a look at this option in addition to a physical card reader, if you’re considering it. For instance, when you send out an invoice with Freshbooks, the client is offered the option to pay online using PayPal, where they can enter their card details and pay when they have a moment in their busy day.

8. Location

Some of your clients may be international in nature, and providing online payment by credit card is a much easier option than requesting a check through the mail or using other payment methods that require a long waiting period to actually receive the funds. If many of your clients are in another state, another country, or the other side of the globe, you might want to consider using an online payment system that accepts credit cards.

As you can see, there are a lot of factors involved in your choice of payment processing methods. You’ll need to consider first what scenario you’re going to need credit card processing for, whether mobile or retail storefront. A card reader and a mobile device looks snappy on a service call, but at a retail checkout area, it may seem lacking.

Then there is the investment concern. A few hundred dollars for card processing equipment may pay off in the long run, but for those just starting up, it’s not necessary. There are quite a few third party payment processing systems available such as PayPal, which I have had good experience with so far. They’re quick to respond to any fishy situations that smack of fraud, and they’re also currently accepted as a form of payment at many retail locations with point of sale terminals. As mentioned above, you can get started with a card reader app and the card reader for free through PayPal, so there is no investment at all using that solution, only small transaction fees.

In the end, the payment solution you choose is up to you, but keep the above factors in mind when you choose. Remember that how you take payments reflects on how professional your business appears to the client, so that’s one last variable to take into consideration.