Ok So...
What is Payment Processing???
Author: Sarah Wilson, 30th April 2024.
In This Blog we will first explain what Payment Processing is for Small-Medium Sized Businesses & then whether it is a good idea to stick with old school Cash and E-Transfer. So Buckle Up! (Approx. 5 Minutes Read)
We assume anyone reading this knows the basic definition of “Payment Processing” = “Being Able to Take Payments through Cards at Your Business”. But… how does it all work? How does the money get transferred into your Business Bank Account? Is it a good idea to do this? Does it cost anything to have this feature at your Business?
The simple answer, Merchant Processing Companies like Moneris, Chase, First Data or Elavon allow any Small-Medium sized business to be able to take card payments at their business throughout the U.S. as well as Canada.
A Merchant Processing Companies job is to securely transfer your customer’s or client’s money that they want to pay you for Your Product or Service into Your Business Bank Account.
“Essentially a Payments Processor is a working bridge between your Business Bank Account and your Customer’s Bank Account”
Now one might ask, why not simply take Cash Payments or E-Transfer. Well, you may already have the answer on the top of your head. Credit Cards and Even Debit Cards are such a big deal now (for a good reason) that it’s simply impossible to avoid them when offering any Product or Services in the market, you definitely come across a customer or client who wants to pay using their Debit or Credit Card.
Getting a Merchant Account (the Account that enables your Payments Processing Terminal/Hardware or your Business Website to work) is pretty simple, if you have a Registered Business in the U.S. or Canada, all you need (usually) is to answer a few questions and some proof of your business and VOILA! your Merchant Account is up and running.
Some Business Owners might even raise questions over concerns in security of the Payments their business is receiving AND we’re with you on this, But the fact is that it is now such a secure and common practice since the release of the Internet back in the 2000’s that it’s all very seamless. Any Payments made from your customers or clients go directly into your Business Bank Account once everything is set up.
Not only does this create ease for you and your employees who will have a hard time taking Cash Payments and/or E-Transfers and then you also having to do your books and everything manually but this also allows your business another chance for growth.
By being able to take payments by all methods including cash (we’re not demonizing cash), E-Transfer & Cards you open your business up to a whole new channel of new potential clients or customers who may love your services but just did not find it feasible to pay via Cash.
Having a merchant account with us also means being able to take other sorts or cards including Apple Pay (one of the most secure payment methods as there is no physical card involved), NFC, Interac & Tap. (which according to some research drives more sales because it is so fast!)
