Card payments for small busiensses

Taking card payments for small businesses

Small business owners just like you are always looking for payment gateways that will accept their customer payments either in person, online, or over the phone. When trying to find a payment gateway that is right for you, there can be many obstacles you may not have considered. In this post, we will talk about the reason payment processing companies refuse small business applications, and the pros and cons of using payment gateways overpayment services like Paypal.

One of the most popular ways of taking card payments for small businesses these days is PayPal. However, this isn’t always the best option and is almost always more expensive in transaction fees. If you are looking for payment gateway providers, you may find it difficult to get accepted for a number of reasons. 

The payment service provider will generally ask you a few questions to determine whether they should accept your application. One of the most important factors a merchant service looks at, is if you have ever had an account before. This makes things very difficult for new small business owners to move forward with their venture.

What are the main types of card payments that small business owners will likely need?

  1. Point Of Sale
  2. Virtual Terminal
  3. Online Payment Gateway

Point of Sale (POS)

A POS system is a payment processor that allows you to take payment for goods and services from your customers in person and over the counter. POS payment terminals come in a variety of different types including mobile card machines, receipt printers, mobile card readers, and pin pads. They can accept payment from either debit or credit cards like American Express, and other major credit cards, or cash depending on the type of payment terminal and methods you have enabled.

Online Payment Gateways

A payment gateway is a payment processor that merchants can use to accept credit card transactions from customers over the internet. Payment gateways allow you to process payment for your goods and services without having to build payment processing systems on your own. Some common payment gateways used by small businesses include PayPal, Payoneer, Google Checkout World Pay.

Virtual Terminal

A virtual terminal payment system is a payment gateway that allows you to process payment for goods and services from your customers over the internet. Virtual card terminals have the ability to accept credit or debit card payments in person, online and over the phone, which makes them perfect payment systems for small businesses just starting out accepting online credit card payments.

Three reasons why payment processing companies refuse small business applications

  • Company sector labelled as high risk for payment processing
  • Companies do not have payment processing history
  • Company owner has a bad credit rating

Company sector labelled as high risk for payment processing

Some merchant account providers refuse to process payments for certain types of businesses. These are often labelled as high risk payment types. If your business type is listed as high risk, it’s unlikely you will be accepted by Paypal and will need to find specialists providing services for high risk merchants. To find out if your business sector is a high risk, visit one of our earlier blog posts “What is a high risk payment processing”
to check out the full list of high-risk industries.

If your business has been flagged as high risk, do not worry too much. There are other options available. However, you should keep in mind that this can reflect on the cost of transaction fees. This is where Uqualify can help your business.

Company doesn’t have payment processing history

When you sign up with a payment gateway provider, they will ask you to provide some details about your business, so they can assess whether it’s in their best interest to take on your application, and what type of services they should offer you. In order for them to make this decision, they need some sort of payment processing history from you. This means that if you don’t already have any payment processing history – which might be the case for a new business owner – payment processing companies will not be willing to sign you up as a client.

Company owner has a bad credit rating

The merchant account provider needs to pull your credit reports from the bureau before they start working with you. If it shows that you have a bad payment history, payment processors are generally going to refuse to offer payment services to you.

Taking card payments: conclusion

Taking online credit card payments for small businesses can be challenging because there are many obstacles to overcome in the payment process.  One of these challenges is that some payment gateways will refuse your application, if you don’t have any payment history or have a bad credit rating.

If you’re looking for assistance taking debit and credit card payments, we would love to help! Our team has been providing high risk payment processing solutions since 2015 and knows what it takes for new merchants to start accepting card payments over the internet, or through their physical shopfronts. Contact us today to request a free quote on our
high risk payment solutions. We are available 9:00 am – 5:00 pm during business days.

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