How to Use Credit Cards in a Craft Business
- 1). Contact your personal bank. Unless you already have a business checking account, you probably haven’t talked to your bank about opening a business (merchant) account with them. Now is the time to open a business checking account and complete the proper forms to accept customer credit cards. The bank will go over the proper procedure for processing your credit card sales and tell you what you will need and where to find it. Don’t be afraid to ask questions, they are happy to help.
- 2). Qualify for a merchant account. You must be a U.S. citizen, have a U.S. checking account and have a U.S. business mailing address. Other requirements are that you are in active bankruptcy, have not credit card fraud convictions, not on the list of terminated merchant file. You will be asked to provide tax returns, provide business references and show your bank statement.
- 3). Online businesses may be more difficult to retain a credit card acceptance from the bank as there is more risk associated. It seems to be easier for unscrupulous individuals to create fraudulent transactions online. However, the longer you can show you have been in business will be an asset in your qualifications. Also, because crafts are generally a smaller ticket item, larger priced items being in the line of more risk, this will also be of benefit in your application.
- 4). Maintain a strong personal credit history. It is said that your personal credit history is the top priority in a bank accepting your application to receive credit cards for payment in your business. As well, a higher personal income is more appealing to the bank.
- 5). Consider that your rate of discount (amount paid to the bank for each transaction) will be higher for online use, again because of the risk factor. A normal discount rate is two to three percent. If you plan on accepting credit cards online, make sure you are aware of the rate you will be charged. Then, make sure your craft prices reflect that additional fee.