Last week, we discussed the specific considerations businesses need to ask themselves prior to accepting credit cards…

• How much am I really paying and could I be paying less?
• Who are my potential buyers?
• Will accepting credit cards increase my sales?

This week, we will discuss the necessary components for accepting credit cards.

Although the very thought of researching how to accept credit cards causes stress for even the savviest of business men and women, it’s really not that daunting once the store owners understand the components of accepting credit cards.

To understand these components, we like to look at it the same way as looking at building blocks…

The blocks include:

Block 1: The foundation – The Merchant & Business Bank Account

Basically, this block consists of the business owner and his or her business bank account. The store owner, or merchant, is the foundation of this process.  Without the merchant or his or her business, there would not be a way for people to pay with credit cards in the first place.

Block 2: The solid and sturdy second level – The Online/Offline Store

This block is the business location, whether it is a brick and mortar store or an online store; regardless, this is the interface that buyers interact with. In order to accept credit cards, physical or online stores must be compliant with the security standards required by the Merchant Account Provider. An example of a secure and compliant online store is Content Shelf.

Block 3: The necessary and unavoidable third floor – The Merchant Account & Provider

This block is the service provider. Much like a cell phone provider, a Merchant Account Provider is the company that charges a monthly fee to use their services to accept credit cards.  Choosing the proper MAP for a particular business module will be discussed next week in part three of our series.

Block 4: The top floor and observation deck – Online/Offline Gateway

This block is the equipment or service that accepts the credit card information and processes it. After processing the credit card, this gateway tells the Merchant Account Provider how much money to deposit into the business bank account.  Remember, each transaction will incur a fee to use this service.  Each transaction… but still, stand out on the observation deck of our building block masterpiece and watch the money trickle in!

All of these components, or blocks, are required for any business to accept credit cards. Each block is customizable based on the store’s situation and what the merchant (business owner) is willing to pay for said services.

We realize this is quite a bit to digest all at once, so we’ll leave this floor plan as food for thought for now…

Next week, we’ll talk about how to choose the right vendors (Online Stores, Merchant Account Providers, and Online Gateways), what fees to expect, and provide recommendations based on our 15+ years of experience.