For all businesses accepting credit card payments is become a requirement. But the possibility of extracting money from a piece of plastic in your client’s wallet or a string of ones & zeros in their phone is intimidating. A lot of the data on how to do it makes it more complicated than it needs to be—merchant accounts are just one example. Here we are going to share with you how to accept credit card payments without a merchant account, so you can easily avoid this pricey and unnecessary pricey step.
Also read: Best Small businesses credit card processing
How Does a Merchant Account Work?
The traditional way is open a merchant account to accept credit card payments from customers is necessary for business. But did you know, what is a merchant account? A merchant account is a special kind or type of bank account that helps you to hold your money after a credit card transaction. After doing all this process your money is successfully deposited into your bank account.
Traditionally, you need to work directly with a bank account or a merchant services provider to negotiate a usually, yearslong contract to pay fees every month and open a merchant account. Then you’d get the required hardware to process payments in-store or set up the software to process the payment transaction online.
But all new businesses mostly skip this step because this step is very complex and unnecessary that’s why they use a payment service provider.
Also read: What is a merchant account? Do you really need one?
How To Accept Credit Card Payments Without a Merchant Account?
Now, we will give you the answer to your question. The question is how to accept credit card payments without a merchant account here is the answer. Without a merchant account, you can accept credit cards payment the way many new businesses do: with the help of a payment service provider.
If you want a cheaper and easiest process then use PayPal, Square, and Stripe.
Did you know? PSPs (Payment Service Providers) work very similarly to merchant accounts because they also help you to accept & hold your money from credit card transactions, but you can manage and sign up for the account entirely online. Also, you do not give the monthly fees because they don’t charge any monthly fees, and they also help you to process transactions besides holding your money.
Also read: How to Get a Business Credit Card with an EIN Only
Accepting In-Store Payments Without a Merchant Account
Square and Clover are modern point-of-sale systems. It comes with hardware and software that’s why it’s easy to sign up.
A simple system like Square and Clover helps you to easily cover all of your requirements as an in-person retail business: POS (Point of sale) (i.e., your capability to check out customers), a credit card payment processor, and a card reader. Mobile Point of sale systems is also available, which can be very convenient for vendors on the go.
They usually accept credit cards through chip reader, swipe, or mobile payment reader (tap), let clients authorize a transaction by entering a PIN (Personal identification number) or signing onscreen, and provide the option to print or email a receipt.
Also read: Best payment gateways for small businesses 2023
Conclusion:
In this article, we try to share with you a piece of complete information about How to accept credit card payments without a merchant account. If you want to get more information then contact us at YMSR. We feel happy to help you!
