If you own a modern business, it’s likely that credit cards are an integral part of your payment plans. This is especially true if you are involved in any sort of ecommerce or you are inheriting a business that had some less-than-ethical billing systems. Disorganization can also cause problems when it comes to submitting payments and making sure you don’t fall prey the common pitfalls that can be associated with credit card processing.
Here are some ways you can avoid these issues and keep your payment records clean.
Avoid a confusing billing structure
One of the easiest things you can do as a business is make sure that your billing processes are all in order. This can be more of a challenge if you company has been running for years and you have survived through paying as you go or without keeping any sort of record. However, this can come back to haunt you when you are dealing with credit card processing. Without a record of your payments, you can find yourself dealing with issues with the IRS.
This is why it can be essential to find a terminal that will benefit your business early on. You don’t want to have to own several different card terminals that work with various types of payment methods (swiping, EMV chip, etc.). You want to have one system that can easily be integrated into others if need be. This is why it is important to have a solid structure available—even if that means scrapping what you had before and starting over.
Be aware of chargebacks
Chargebacks are a common occurrence when it comes to credit cards and finding the best merchant account to help you handle these is completely necessary as a business. One of the biggest issues that business owners run into is the fact that they are not keeping track of when chargebacks happen and for what amounts. Your entire business’s payment plan can be thrown off by one or two big clients that submit for a chargeback. The best way to avoid this wrecking your business is to be aware of when it happens and to contact your customer as soon as you catch it. It might have been a mistake that you can rectify.
Know your payment facilitators
Your payment facilitators are the ways that you make payments, you’ll probably recognize them as service like PayPal. These can work well when you are running a small business and you have a limited amount of funds going in and out of your account, but the more money that starts to go through (and the more potential chargebacks you have) the higher the chance you are going to run into problems. Know the terms set by your payment facilitators in advance so you can make an effort to circumvent any problems when your business grows.
How you look at your payment process and how they are performed can be essential to the success of your business. Once you know the pitfalls to avoid, you can go forward with the knowledge that you are less likely to run into them.