Accepting credit card payments is a proven way to increase sales and grow your business. However, it may seem like there is a lot of equipment you need in order to accept credit card payments from your customers. This not always the case as all you need is a telephone.
A telephone credit card processing account allows your business the convenience of accepting credit cards and all you need is a telephone. Once the account is set up you will be given a voice authorization phone number to call when you need to accept a credit card payment. When calling all you need to do is provide the credit card number, expiration date, billing zip code and the three digit code on the back of the card. Once that information is provided you will be given an authorization code that the credit card has been accepted. That’s it. A simple solution to accepting credit cards without the need for expensive equipment.
Another benefit about setting up a telephone credit card processing account is that you can expand the account as your business grows. You can add processing through a smart phone which gives your business the ability to capture customer signatures at the sale. You can also add a virtual terminal which gives your business access to a terminal at the office for instances when your customers call in to order products or service.
There are many conveniences to adding a telephone credit card processing account and very little expense. By making it easier for your customers pay, you are expanding your reach and are creating the infrastructure necessary to grow your company.
A merchant cash advance is an easy, quick and cost effective way to get working capital for your business without the headache of a traditional loan. Qualification for a merchant cash advance is far less strenuous than traditional lending instruments. Cash is available in as little as 4 business days and is deposited directly into your business account.
How does it work?
A merchant cash advance allows your business to receive a lump sum payment based on your future credit card payments. You decide how much money you would like advanced. That money is then deposited into your account for use as you see fit. The cash advance is automatically paid back over a predetermined number of months. Over those months a specific percentage of each sale is used to pay for the advance. You have absolutely nothing to worry about as the advance is paid back automatically.
What are the qualification requirements?
Qualification for a merchant cash advance is easy and includes:
- A least a 500 credit score
- You are currently processing greater than $5,000 a month
- Your business primarily swipes credit cards and your average ticket is less than $600
- You perform at least 15 batches per month
- Your business has been operational for more than one year
If you would like additional information on a merchant cash advance, please provide us with your contact information and a representative will be in touch to discuss the program in detail.
When considering opening a merchant account it is important to understand that there are a few different merchant account types that your business can qualify for. The type of merchant account that is right for your business will depend on how you are accepting credit cards.
There are essentially two types of accounts that are offered, a swipe account or a keyed account. We will discuss both.
Swiped Account / Retail Account
This account type is set up for establishments that conduct business face to face and transact credit cards via swiping the credit card through a credit card terminal. The approval criteria for a swiped merchant account states that 80% or more of your credit card transactions must be swiped through a terminal. The transaction fees associated with a swiped account are the lowest available. The rates are lower for this account type due to the fact that occurrences of fraud are typically lower when the customer has to present the credit card in person. More information on protecting your business from fraud.
Keyed Account (Internet Accounts, Mail Orders, Telephone Orders, Fax Orders)
Keyed merchant accounts are set up for establishments that do not conduct business face to face. This account type is set up for situations where the credit card information is keyed or typed into a terminal, virtual terminal or website. This type of account represents a higher degree of risk for the processing bank. This is due to the fact that the identity of the customer completing the order cannot be guaranteed. The transactional rates for a keyed account will be slightly higher because of the increased risk of potential fraud. When accepting orders with keyed merchant account it is important to gather as much information as possible to verify the credit card information matches the information on file with the bank that issued the credit card. It is customary to gather the following at the very minimum:
- Credit Card Number
- Expiration Date
- Billing Zip Code
- CVV Code
If your business operates in an industry that has a greater degree of fraud attempts if might be advantageous to take advantage of additional fraud prevention tools.
A merchant account is a line of credit extended to your business. As such the underwriting criteria for approving a new merchant account includes the credit score of all applicants presented on the application. A bad credit score does not, automatically, mean the account will not be approved. Other criteria are also considered and include; the business’s industry, the method in which credit card transactions are processed (swiped vs. keyed in), the business’s financial strength and business history.
A retail business (traditional brick and mortar) will have an easier time securing a merchant account with bad credit then an internet business or home based business. Additionally, certain industries are considered high risk and it will be more difficult to secure an account with bad credit if your business is categorized in a high risk category.
Another consideration for securing a merchant account with bad credit is to identify a merchant account processor that specializes in account approvals for low credit merchants. Another option is the addition of a co-signer on the account. The co-signer assumes some of the risk on the account and does not need to be a principal in the business.