Credit card processing for startup companies
Company Bureau Formations
10 August, 2020
When starting a new business venture, most entrepreneurs want to start trading as soon as possible, and a major aspect is choosing the right credit card processing system. Having a secure merchant services provider is the best way to meet your customers' various payment preferences.
It should be noted that registered companies are required to have a corporate bank account to maintain the business's finances. So this should be obtained as soon as the company is set up. However, if you are operating a Sole Trader (not a registered company) you can use a personal bank account to manage business finances.
Consider your payment processing needs
Electronic payments, eCommerce, and credit card processing are still the most common needs for most businesses. It is important to choose a provider that is on top of consumer payment trends so you can offer flexible options to your prospective clients.
A start-up company should consider the following:
- Do you need to process payments for your company only, or does your company need to process payments on behalf of the company's clients? This determines whether your company needs to function as a payment facilitator.
- Does your company need only a card-not-present (CNP) solution for online recurring payments, or is a card-present solution (EMV) also required?
- Does your startup company need to support multiple currencies, or is that not important?
The best payment gateway solutions for startups
There are various merchant systems on the market today that offer secure credit card processing. This list covers some of the best payment gateways solutions for startup companies.
1. PayPal: This happens to one of the best payment gateways for low-volume sales. PayPal is very popular, and most major websites have a PayPal option in addition to a credit card processing option. While it is true that PayPal now processes credit card transactions, many online setups require the customer to create an account before paying, so it is recommended to use Paypal in conjunction with another payment service provider to ensure more customers are able to process their payment.
If you are a Sole Trader or contractor, using PayPal alone is a budget-friendly option, the service has pay-as-you-go pricing, and it is easy to raise client invoices.
2. Stripe: Founded in Ireland and now operated from the US, Stripe is widely recognized as one of the best online payment processing solutions. Account set-up and the management dashboard are easy to use. The user-friendly interface is ideal for online stores, allowing customers to process their payments quickly.
3. Elavon: Elavon is the only independent payment acquirer in Ireland. The payment gateway offers a highly secure and convenient solution with real-time reporting. Services can be tailored to meet your specific business needs including eCommerce, telephone order, and point of sale solutions using your iPad.
4. Merchant One: This full-service credit card processer offers custom packages to suit the company's needs. The startup company can handle anything from an entire POS system with terminal, to a simple card swiper to be used with your mobile device.
5. Square: This gateway provides a fast and simple way to accept credit card payments anytime and anywhere, and this is arguably the best mobile credit card processing company, especially for startups.
6. Helcim: Helcim's payment gateway is one of the most transparent credit card companies in this sector. The service has the ability to offer interchange-plus pricing and to all its merchants.
What other aspects should be taken into consideration?
There are some more basic factors to consider when choosing a credit card processing provider. When your analysis is complete you should be able to narrow down the choice of payment processors to just one or two suitable platforms.
The following aspects should be considered:
- The company should conduct a feasibility check. Be sure to note the expected revenue from online, in-store, and recurring invoices and compare that to the processor's rates and charges. Be away that the fees will equate to approximately 1 - 2% of your processing value depending on the volume of sales.
- Where the company needs a card-present solution, it is very vital to evaluate the technology that is being implemented, the upcoming integration needs to be considered, and the cost of devices to be used. It is also very important to verify all the necessary tools are available.
- What features are the most important for your business? Do you need an all-in-one solution or does the company only need to process invoices or point of sale payments?
- Does the current Customer Relationship Management (CRM) system need to integrate with a payment gateway?
There are many options on the market, and depending on where your business is based you may find it more suitable to choose a local provider. However, if the company has a low starting capital and low processing volume, do not try to find the cheapest option. As they say, 'you get what you pay for' and switching to another provider when sales are higher could be much more costly and time-consuming in the long run.
Be sure to read reviews and see what customers are saying to avoid trouble in the future. Also, it is advisable to choose a credit card processor that uses streamlined technologies so there is no delay when receiving funds.
Company Bureau has worked with many of the leading credit card processing and payment solutions, and can give you firsthand advice regarding ecommerce integration, invoicing options, and point of sale solutions.
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