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The Benefits of Taking Card Payments in a Small Business

Within business, there is a need to ensure relevance in a changing market where physical cash payments become less frequent and contactless (or mobile) payments continue to increase.

Further to this, taking card payments provides protection for business and customers, as well as unlocking the potential of an alternative to business loans.

How do I set up card payments in my business?

There are plenty of routes to becoming a connected card payment business, regardless of size.

Take a look at different options dependant on your business size which includes onetime software setups, connected to a tablet or mobile phone with a monthly cost (generally a percentage of each sale) or a set subscription.

Larger business can upscale this to deal with providers using connected chip and pin terminals and relationships with card issuers, authorisation and sales processing on a greater scale. Again, costs will vary dependant on provider and service levels (generally dictated by the number of sales).

Whichever provider level is chosen, ensure due diligence is carried out on the company and there is trust between yourself and the party involved – remember companies are dealing with your money.

Section 75 of the Consumer Credit Act

People buying through a smaller business will sometimes look for protection on spending, particularly if this a large amount of spend upfront for a product or service – having card payments allows buyers to be protected by Section 75 of the Consumer Credit Act, as well as companies being able to offer the assurance within financial transactions.

Section 75 of the Consumer Credit Act protects buyers using credit cards on sales over £100 and under £30,000 against the products and services provided, should a company not provide the service, or stop trading before services are provided. The act puts credit card companies as liable as businesses as well.

Unsecured Cash Advances

Beyond customer satisfaction, card payments open the door to alternative lending streams such as merchant cash advances (or business cash advances as they are sometimes referred).

The process is simple, a loan is given based on a set fee and then paid back as a percentage of credit and debit card sales within a business, with no additional interest or charges. For seasonal businesses, this is also a benefit, as it means payments fluctuate up and down throughout busier and quieter periods, so loans can be paid off at a level suited to the business.