How to Take Credit Cards as a Small LLC: Getting Started and Beyond

Taking credit cards as a small LLC can seem daunting, but it's a crucial step in growing your business.

You'll need to obtain a merchant account, which allows you to accept credit card payments. This can be done through a third-party processor or a bank.

To get started, you'll need to provide financial information and business documentation to the processor or bank. This may include your business's tax ID number, bank statements, and proof of business ownership.

It's also essential to choose the right payment gateway, as this will determine how your customers' credit card information is processed and secured.

To start taking credit card payments as a small LLC, you'll want to research your options carefully. Research Bankrate's Small Business Hub to find a credit card processor with affordable processing fees and the right payment terminals for your business.

You'll need to decide whether to use a payment service provider or open an individual merchant account. Payment service providers can be set up quickly and are cost-effective for smaller businesses, but they may be more prone to disruptions like holds or terminations.

If you're a high-volume business, opening an individual merchant account may be more cost-effective. This requires an application and review process, but it's often worth it for businesses with a high volume of monthly sales.

Here are the key differences to consider:

Once you've decided on a payment option, you can start setting up your payment terminals and getting ready to accept credit card payments.

Payment processing is a crucial aspect of taking credit cards as a small LLC. You'll need to decide between a traditional merchant account and a payment service provider (PSP) like PayPal, Stripe, or Square.

A traditional merchant account can be costly and time-consuming to set up, but it may offer lower fees for high-volume credit card sales. In contrast, PSPs are faster and easier to get started with, but their fees tend to be slightly higher. However, PSPs handle the merchant account for you and often include a card reader for free.

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Transaction fees can be confusing because they may change depending on factors like credit card network, credit card type, and method of payment. For example, Square charges 2.6% plus 10 cents for in-person transactions, while Helcim charges interchange plus 0.4% and 8 cents per in-person transaction for businesses with $50,000 or less in monthly card transactions.

Here's a summary of some popular payment processing options:

Keep in mind that these fees are subject to change, and you should carefully review the terms of any merchant service agreement before signing up.

You'll need to set up payment terminals across your business to accept credit card payments. This involves ordering and setting up hardware, like a card reader and a point-of-sale (POS), if you don’t have one already.

Most credit card processing providers offer training resources to help you (and your staff) make the most of their hardware and software. Check to see what training your card processor offers.

For brick-and-mortar shops, setting up payment terminals is a crucial step. You'll probably skip this step if you're an online business since you'll accept payments through secure online payment gateways instead.

If you do any sales online, you'll need to set up online payments too. E-commerce platforms like Shopify have a built-in payments portal.

Here are some key things to consider when setting up payment terminals:

Some credit card processing providers offer card readers for free, while others may charge a fee. Be sure to check with your provider to see what options are available to you.

By setting up payment terminals correctly, you can ensure that your customers can pay easily and securely, and that you can process payments efficiently and accurately.

Helcim is a payment processing provider that stands out for its interchange-plus pricing model. This means that Helcim charges a base rate plus a markup, resulting in a lower overall fee for businesses.

Helcim's interchange-plus pricing is available for in-person transactions, online transactions, and manually keyed transactions. For businesses with monthly card transactions under $50,000, Helcim charges interchange plus 0.4% and 8 cents per in-person transaction.

Helcim also offers competitive rates for online transactions, charging interchange plus 0.5% and 25 cents per transaction. This is a significant advantage for businesses that process a large volume of online transactions.

In addition to its competitive pricing, Helcim also offers a low rate for ACH payments, charging 0.5% plus 25 cents per transaction, capped at $6.

Here's a summary of Helcim's pricing:

Overall, Helcim's interchange-plus pricing model makes it an attractive option for businesses looking to save on payment processing fees.

Payment processing time can vary depending on the card company and issuing bank, but it's typically processed within one to three business days.

The exact time frame can be affected by the number of transactions being processed, but most credit card payments take a few days to clear.

In general, it's a good idea to plan ahead and factor in some extra time for payment processing to avoid any potential delays.

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To accept credit card payments, you'll need to consider the various payment options available to you. Square is a popular choice for all-in-one payment processing and POS systems, with fees ranging from 2.6% plus 10 cents for in-person transactions to 3.5% plus 15 cents for manually keyed transactions.

You can choose to accept credit card payments in person, online, or over the phone. Square's compact card reader is a convenient option for in-person transactions, while online payments can be processed through a payment gateway or shopping cart.

Here are the fees for some popular payment options:

Keep in mind that fees can vary depending on the payment method and your business's specific needs. It's essential to shop around and compare costs to find the cheapest option for your small LLC.

In-person credit card processing is useful for brick-and-mortar retailers, on-site service providers, and mobile business merchants. This type of transaction is considered a lower risk of fraud, which in turn carries lower fees than other types of transactions.

You'll need a card reader and a POS system to process credit card payments in person. Square is known for its innovative, petite card reader that attaches to smartphones, turning any device into a payment terminal.

Venmo is a popular option for mobile payments, and it has released credit card processing solutions for businesses. However, to accept credit card payments via Venmo, you'll have to link your Venmo for Business account to Braintree, which is owned by PayPal.

You can accept credit cards online through various methods, including sending customers a direct payment link, accepting credit cards with a payments page, or using a shopping cart. The customer will follow these steps: click the link to open a payment page, enter the dollar amount, enter their contact information and billing information, and click a button to complete their order.

Here are some options for accepting credit cards online:

You can also accept credit card payments over the phone using a virtual terminal or payment gateway. This is a more secure option than writing down credit card information on paper and then entering it into a terminal or POS after you get off the call.

Ultimately, the best payment option for your business will depend on your specific needs and preferences.

Debit vs credit card payments are two common options for businesses to accept. Debit cards draw funds directly from your customer's bank account, making them a lower-risk payment type for banks.

Banks generally consider debit cards lower-risk than credit cards. If your processing company uses an interchange plus pricing model, you might pay lower fees for debit cards than credit cards.

Fees for debit cards can be lower than credit cards if you're paying a flat-rate fee. However, fees may change depending on how the payment is processed.

The processing time for debit cards can differ from credit card processing time. Be sure to clarify this point with any potential credit card processing companies you're considering.

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If you're a small LLC looking to accept credit cards, you have several popular solutions to consider.

Square offers a range of payment processing services, including a free magstripe reader for in-person transactions.

Stripe provides a suite of payment tools for online transactions, including support for multiple currencies and payment gateways.

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PayPal is another popular option, offering a simple way to accept credit card payments online, with fees ranging from 2.9% + $0.30 per transaction.

Authorize.net is a payment gateway that allows you to accept credit card payments online, with fees starting at 2.9% + $0.30 per transaction.

If you're looking for a more comprehensive solution, consider a merchant services provider like Stripe or Square, which offer a range of features beyond just payment processing, such as invoicing and inventory management.

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Credit card processing fees can be a mystery for small business owners, but it's essential to understand them to make informed decisions. Most credit card processing providers charge fees per transaction, which can range from 1.5 percent to 3.5 percent, depending on the type of credit card used.

The fees also depend on the card processing provider you choose, such as PayPal, Stripe, or Square, and the way you accept payment. For example, American Express tends to charge higher fees than its competitors, with a processing fee range of 1.43 percent + $0.10 to 3.30 percent + $0.10.

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Here's a breakdown of the average credit card network processing fees:

It's essential to weigh your business needs and consider the volume of transactions, the method of payment, and the type of credit card used to find the best and cheapest way to accept credit cards.

Fees can be a complex and confusing topic for small businesses, but don't worry, we're here to break it down for you.

Most credit card processing providers don't charge monthly fees, but instead, they charge fees per transaction, which can range from 1.5% to 3.5% per transaction plus a flat fee.

The type of credit card used also affects the fee, with American Express typically charging higher fees than its competitors. Some businesses choose not to accept American Express cards due to these higher fees.

The way you accept payment also plays a role in the fees you'll pay, with card-present transactions costing less than online or keyed-in transactions.

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Here's a breakdown of average credit card network processing fees:

Keep in mind that these rates vary by currency and are subject to change.

Some payment processing providers, like Square, offer flat-rate pricing, where you pay a set rate per transaction, regardless of the credit card network. For example, Square charges 2.6% plus 10 cents for in-person transactions.

It's essential to consider the volume of credit card sales your business processes and choose a provider that offers volume discounts or a subscription-based service.

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The right hardware and software can be pricey, so it's essential to know exactly what you need before making a purchase.

Software and hardware costs can add up quickly, especially if you're expecting to take most of your payments in person.

Budgeting for an advanced card reader and the best point-of-sale system and software can cost more, but it's worth considering if you need it.

You don't have to spend a fortune to get started, as some companies offer low-cost or even free card readers and POS systems.

Some companies will include software and hardware at no cost when you use their credit card processing services.

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