Types Of Cards You Could Accept
There's a wide range of debit and credit cards on the market and the types of cards you decide to accept will depend on
the nature of your business and the agreement with your bank.
Credit cards and charge cards work in a similar way. Both allow holders to make purchases up to a specified
limit. The main difference between them is that charge card holders have to pay the balance off in full at the end of each month
while credit card holders can choose to pay off a minimum, or other amount.
There are hundreds of providers - most cards are Visa or MasterCards issued through a bank or building society.
With a debit card a cardholder can only spend the funds they have available in their account or overdraft facility.
Contactless Cards
Contactless is a new feature for many credit and debit cards. It was introduced in September 2007 in London and
is being rolled out across the UK over a number of years. Contactless cards can be used for transactions of £10 and under and
will enable customers to simply hold their contactless-enabled card up to a secure reader to make their payment.
Contactless cards provide a fast, effective alternative to cash, reduce queues and utilise the security built into a Chip and PIN card.
If you are interested in accepting contactless cards, contact your acquiring bank. This is the bank that provides the
service which allows you to accept card payments for goods and services.
Card Transactions
Regardless of the type of card, details of the transaction are sent by your terminal or till to your bank who then passes the transaction
details on to the card issuer. You are then credited with the value of the transaction - usually within three to four working days,
although this will depend on your agreement. It is worth noting that internet transactions may take considerably longer - up to 30
days through a "payment service provider" (PSP). Your bank will charge you
a Card Payment Processing fee.
Processing fees can vary widely depending on the type of card and the type of transaction - card present or card-not-present. This
is likely to be the key consideration when deciding which cards you will accept and you should research these charges carefully. For
example, if most of your transactions are likely to be for small amounts, the higher charges associated with credit cards may mean it
doesn't make sense for you to accept credit card payments. For more information, see
Card Merchant Transaction Fees And Charges.
| 
