Today's consumers crave convenience. From fast-food to dry-cleaning to shopping, busy consumers are always on the lookout for easier ways to do the things they have to do, as well as the things they want to do. Businesses that want to grow and thrive need to be sure they're doing all they can to keep current customers and draw new ones. One of the best ways to make customers happy is to offer the option of paying by credit card. An increasingly popular payment option, credit cards can increase your sales and expand your customer base significantly. Accepting credit cards for telephone purchases is a relatively simple process, but it can be time-consuming. These tips can help guide you through the process and get your business on the fast track to success in no time at all.
Step 1
Apply for a business license. Before you can consider accepting credit card payments at your business, you must first apply for - and receive - a business license through your local chamber of commerce or county agency. Ask your town of city hall for information about where and how to apply; the type of office that deals with these requests can vary based on your location. Applying for a business license is usually simple process, requiring limited documentation if your business is new. If you have an established business and you are relocating to a new area, you will likely be asked to provide documentation of your business' activities or sales.
Step 2
Open a business account. Here's where your business license comes into play: most banks will not allow you to open a business account without a business license. Even if you're self-employed, you will need to have a "doing business as" license, or DBA. When opening your business account, be sure it has the capability to accept deposits from other banks and be sure you understand all of the fees associated with the account, as well as other requirements, including minimum balance requirements. Your local bank may have great business account options, but don't limit yourself -- consider online banks and financial institutions when you're looking for the best business account provider.
Step 3
Open a merchant account. A merchant account facilitates credit card purchases, and relies on programs to verify buyers' credit cards and ensure they have enough credit on their card to pay for the purchase. Merchant accounts developed for phone order businesses are often referred to as MOTO accounts -- short for mail order/telephone order. The merchant account will also oversee and perform the transfer of funds form the credit card issuer to your business bank account. Merchant accounts have fees associated with them, including one-time fees, monthly fees, and transaction-based fees, so be sure to shop carefully for your merchant account. Some merchant accounts also provide software that allows customers to place orders automatically, entering their credit card information using their telephone keypad; if that's an option you'd like to consider, be sure to choose a merchant account provider that offers it.
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