What should I do when starting a Credit Card... - Other Questions


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Credit Card Applications » Questions » User Questions » Other » What should I do when starting a Credit Card Processing Business?

What should I do when starting a Credit Card Processing Business?

Answered on | Updated on August 15th, 2010
The content is accurate at the time of publication and is subject to change.

The credit card business is a lucrative venture and has grown to such heights because it has been carefully and thoughtfully planned for. If you are an entrepreneur looking to start a business in this industry, the first thing to do is to fully understand what credit card processing means, as well as the mechanics and requirements and equipment opening a merchant account entails. More importantly, you should be able to comprehend how the process works. You may gain extensive information on this on the internet or personally inquire from banks or credit agencies. You could also communicate with your local Small Business Bureau for information regarding the credit card processing subject.

Then, you should register your business to your local Small Business Bureau as an official, legal business. By doing this you can rest assured that you (on a personal level) are shielded from inconveniences and anomalies.

The next step is to find a bank, advisably within your geographical location. This could be a tricky step due to the fact that many banks have discontinued in the business of credit card processing. Some of the banks still in the business are a bit wary of granting service to businesses of small nature especially those with rather short operating histories, at which case the next step would be to contact an Independent Service Organization (ISO) which will assess the risk in granting processing merchant accounts to companies.

An important action to do while searching and choosing which bank you would work with is to provide your bank prospects with your complete business plans. Be completely honest with your strengths, opportunities and risks. Any indication of incomplete or even slightly altered facts could get you sued for criminal fraud.

When you finally do find a bank, inquire of a “reseller” program. A reseller program permits companies to be Ў°authorized agentsЎ± of the bank processing services. This means that your business will be able to present and adapt the banks’ processing assistance as their own while still paying to the bank the corresponding payments.

The next step is to communicate with a terminal processing company for terminals you can buy and stock at your area. You may or may not sell the devices, or lease them. Should you choose the latter, you should check on the leasing terms of the devices you acquire. More often than not, leasing is more advantageous than selling them.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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