With over 300 million population in the United States of America alone, it’s no wonder that credit card transactions runs into billions of dollar annually. If you are looking to make some money in a new and dynamic way, then you might want to consider starting your own credit card processing company.
Many have made it before you. With the proper know-how and equipment, you can set up your own credit card processing company and become part of those can earn from credit card transactions every year with as little amount invested up front. This guide includes tips on finding clients, choosing the right equipment, understanding merchant account fees, and more. When it comes to setting up your own business and marketing yourself to others, you need to think of yourself as an expert in order to be an expert. Read on to learn how to start a credit card processing company. How to Start a Credit Card Processing Company in 8 Simple Steps
Step 1: Create your Credit Card Processing Company Vision
Your company vision is your Credit card processing company business plan’s mission statement it’s what you want to accomplish with your Credit card processing company. Your vision should include who you want your customers to be, how many employees you intend to hire and how much money you want to make each year. If you are just starting out, start with small goals that can help give your company stability. For example, aim for $3 million in sales by next year or hire three new employees over the next six months.
Step 2: Register your Credit Card Processing Company
Make sure you register your credit card processing company with your state and county authorities, and get an EIN (Employer Identification Number). This can easily be done online. Even if you don’t have any employees yet, or aren’t technically an employer, it’s not hard. You also need an Employer Identification Number (EIN) from IRS so that you can open a bank account, apply for credit cards and other financing options, pay payroll taxes, etc.
Step 3: Choose a Merchant Account for your Credit Card Processing Company
A merchant account links your business directly with banks and payment processors, enabling you to accept credit cards for purchases. Your credit card processing company will need to get a merchant account for each credit card processor you work with. When you sign up for an account, be sure it doesn’t have set-up or recurring fees. Also, check to see if there are any limits on how much money you can process through that account you don’t want to overburden yourself right out of the gate. If you plan on accepting online payments as well as in person, make sure your merchant account offers both options.
Step 4: Get the Proper Equipment for your Credit Card Processing Company
In order to process credit cards, you will need specific equipment: at least one computer, an Internet connection, and phone line. Depending on how large your company is and what type of processing it does (point-of-sale or online), you may also need card readers and other equipment. You can buy all of these things new or used. Make sure whatever you buy is up-to-date and secure. Also make sure that everything works together properly before spending any money. Your setup should be tested by someone who knows how to use it before you start taking payments from customers. Once everything is set up, keep good records so that if there are problems with your processor or merchant account later on, you have proof that everything was working when you started taking payments.
Step 5: Market your Credit Card Processing Company and grow your Clientele
if you have an existing business, then you are well on your way. But if not, then it’s time to start marketing your credit card processing company and growing your clientele. This can be a challenge as many businesses are always looking for fresh and new clients. However, if your pricing is right and you are good at what you do, they will come find you. These steps are critical in order for your business to survive past its initial stage of startup.
Step 6: Handle the Credit Card Processing Company Sales Process
If a prospect is not ready to buy, then you need to wait and stay in touch. In general, prospects have several questions before they are comfortable with moving forward. At any point during your follow-up sales process, if it becomes clear that your prospect is not ready for an initial consultation, thank them for their time and be sure to point out that you are always happy to help with future questions or additional information if needed. Write down what you discussed so that you can refer back to it later.
Step 7: Integrate your Credit Card Processing Company with QuickBooks
It’s now time to integrate your new payment processing company with QuickBooks. There are many options available, and you may want an accountant or other professional service provider to do it for you. If not, here’s how it works: enter your merchant account credentials into QuickBooks, and then enter your daily sales totals into that system. The numbers will flow automatically between systems, ensuring that no transactions slip through the cracks.
Step 8: Monitor your Credit Card Processing Company Daily Operations.
You have got big dreams, but if you don’t pay attention to your daily operations, you won’t be able to take advantage of them. Make it a priority each day to monitor how your credit card processing company is going and whether or not you need more funds for expansion. If your sales are less than predicted, use that as an opportunity to plan ahead and strategize about how much money you need and what needs doing. As your credit card processing company grows, so too will its needs! In order to meet those needs, you have to keep track of how your business is doing every single day. Don’t let yourself get caught off guard by anything and don’t make excuses when things go wrong! Keep tabs on your business at all times and remember: there is no such thing as too much information when it comes to running a successful company. The better informed you are, the easier it will be for you to make smart decisions that benefit both yourself and your customers!