The Law According To Moses
Getting Paid: What is 3rd Party Credit Card Processing?
By Ambrose Moses, III
Contractors, home-based businesses, internet-based businesses, small retail shops, and business professionals all get paid for the goods and services they provide to their customers and clients. The days of cash transactions are nearing an end. Today, more and more transactions occur electronically and through the use of credit cards, debit cards, and third-party payment processing.
Since customers are increasingly using non-cash methods to pay for goods and services, a business may lose sales if it is unable, or unwilling, to accept alternative methods for payment. A third-party processor such as PayPal lets you accept online payments without a merchant account of your own. Instead, they let you use their merchant account under their own terms of service, usually with very little setup required.
When you use a third-party payment processor, you are using that company’s merchant account (not your own). You pay them a percentage of the sale as a fee for processing credit card transactions for you.
As you develop or revise your process of invoicing and accepting payment from your customers, consider whether utilizing a third-party processor could be beneficial. There are even attachments you can plug into your smartphone that will 1) allow you to accept payment from customers by swiping debit and credit cards, and 2) immediately email the customer a receipt for the payment. This could be useful to a contractor who has completed a small on-site repair job at the customer’s home or a vendor selling products at a local street fair.
Third-party processing is simply another method for receiving payment for services rendered and goods sold. It can help a business increase sales and revenue by making it easier for customers pay for the goods and services they receive.
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Ambrose Moses, III is an attorney with Moses Law Office. Email: info@MosesLaw.pro. Telephone: (614) 418-7898. CLICK HERE to Request a Call.
