Getting paid with credit and debit cards is easy with a payment processor service.

A key element of running a business is getting paid. For many customers the most convenient way to pay is with a credit or debit card. That’s why businesses turn to payment processors.

What payment processors do

A payment processor facilitates payments made with a card two key ways:

• Providing technology that allows customers to swipe, dip or tap their card or offering an online platform where buyers enter their card info
• Managing payment logistics between card issuers—like Visa, Mastercard and others—so vendors get paid, and buyers get billed or have their account debited

Businesses link a bank account, such as a business checking account, to their payment processor account so direct deposits can be made.

Is it difficult to use a payment processor?

Payment processors make it easy for businesses to get set up to accept cards for payment.
The basic equipment is a point-of-sale device that requires internet or wi-fi access. Some businesses opt for mobile devices while others choose countertop terminals.

For businesses that operate online, virtual terminals work on any internet-connected device. This option can be accessed from a laptop or tablet you already have.

How much do payment processing services cost?

There are two cost categories to consider with payment processing services. First, one-time costs which may include fees for setup and the cost of card-reading equipment. For card readers that work with smartphones the equipment can be less than $75.
The second type of cost to consider is transaction fees. These vary widely among payment processors. At a minimum, they’re 1.5% to 3.5% of each transaction, and many payment processors tack on a flat fee between five and thirty cents per transaction.

There may also be chargeback fees when a customer disputes a charge.

What to ask when choosing a payment processor

There are dozens of payment processors to choose among. Compare several to find one that suits your needs. Dive into the details like these:

• Is there a contract and if so what does it entail?
• What equipment is needed and how much does it cost?
• What does it cost to get set up? (For example, is there an application fee or programming charge?)
• Are there ongoing expenses for supplies?
• How are chargebacks handled?
• How much are transaction fees?
• Is there a limit on transaction amounts?
• How long does it take for money to be deposited in your account?

Payment processing for Consumers business members

At Consumers our merchant services include card processing that allows business members to securely accept credit and debit cards at a low cost. We work with the Michigan Retailers Association to help members save an average of 36% on credit card processing fees. Check out our credit card processing whether you have a new business or already use another payment processor.

 

All loans subject to approval. Rates, terms, and conditions are subject to change may vary based on credit worthiness, qualifications, and collateral conditions. Federally Insured by NCUA