How to Process Debit & Credit Cards

If you've started your own business, one of the first details you'll have to cover is how to accept payment from clients and customers. You can take cash and checks in most cases, but one of the most reliable and popular methods is to accept plastics. Over a billion debit and credit cards were in circulation as of 2009. You have a number of choices for setting up a merchant account to accept these cards at your business.

• 1

  Create a traditional merchant account if you plan to accept cards in a physical retail store. This account requires you to purchase processing equipment in the form of a credit card swipe reader. The customer must present you with a physical card and in some cases you can type the number in manually. If the customer has a debit card, he must enter his PIN number or process it as a credit card transaction. After swiping, wait a few moments for an approval to close the transaction.

• 2

  Establish an Internet gateway account if you plan to accept credit card payments online. This type of merchant account does not require equipment. Simply provide the buyer with a link where he can enter his credit card information into a web browse--in this case the customer processes his own transaction and receives an approval message online. It processes both credit and debit card accounts. Wait for a message via email confirming that you can send products to the customer.

• 3

  Sign up for a mail order telephone order merchant account--sometimes called a virtual terminal--if you plan to accept cards over the phone. With a MOTO account, you're provided with either an online account or a physical terminal with a type-pad. Speak with the customer over the phone, read a fax, or receive the credit card order through the mail. Type in the customer's credit or debit card number into the online or type-pad terminal to process the transaction and receive an approval.

• 4

  Apply for a mobile merchant account if you sell items when traveling on the road. This type of merchant account allows you to dial into a phone system and enter the customer's credit or debit card number into your phone's touch-tone keypad. The system informs you of an approval within a few moments. Some mobile merchant accounts allow you to swipe the customer's card right on your Internet-enabled cell phone instead of calling into the automated system.