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How to accept card payments without a merchant account?

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The thought of taking money from a customer’s wallet in a piece of plastic can be unnerving. As such, accepting credit card payments is almost a necessity for businesses. A card machine for business allows card payments to be taken from customers, meaning shoppers can pay the way they want. “How to accept card payments without a merchant account?” is a question that merchants are frequently asked. Yes of course! This happens through a dedicated account that is not unique to your business. To save yourself the hassle and expense of opening a merchant account, here’s how to take payments without a merchant account.

What is a merchant account?

All payments processed by the payment gateway provider are stored in a merchant account. Processed payments are often held in a merchant account for a few days and then transferred to a business bank account once they have cleared. This is the traditional way of taking payments and it depends on many parties and procedures. A merchant account is no longer strictly necessary, thanks to a new type of payment processor. Payments facilitation companies have the necessary technology to process and clear credit card payments. They hold your funds in some sort of shared merchant account, then transfer the funds to your business account within one to three business days. And these credit card processing firms charge you a percentage of each transaction rather than your merchant account provider and payment gateway charging you individually.

How does a merchant account work?

In the past, a business had to register a merchant account to take payments from clients using a credit card. When the credit card machine processes a credit card transaction, your funds are held in a merchant account, a special type of bank account. The money will then be sent to your business bank account. In the traditional model, opening a merchant account and settling monthly fees requires negotiating with a bank or merchant service provider. After that, you can set up the software you need to accept payments online or buy the hardware you need to handle payments in-store. Since it all seems too complicated and expensive, most new businesses choose to approach an all-in-one payment service provider.

Accepting card payments without a merchant account

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As many other modern businesses do, you can use a payment service provider to accept credit cards without a merchant account. Thanks to payment service providers like PayPal, Square, and Stripe, the process is now much simpler and, in many cases, less expensive than in the past. Although you can register and manage your account entirely online, payment service providers operate similarly to merchant accounts in that they take and hold your money from credit card transactions. Also, they handle transactions in addition to holding your money, and they usually don’t charge a monthly fee for maintaining an account.

Accepting in-store payments without using a merchant account

POS systems like Square, SumUp and UTP are easy to set up and include all the hardware and software needed to handle transactions. This straightforward method fulfils all your needs as a brick-and-mortar retailer. Mobile point of sale systems is also available, which can be very useful for mobile merchants. Usually, they allow users to authorise a transaction by entering a personal identification number (PIN) or signing on the screen, and accept credit cards via swipe, chip reader or mobile payment reader. Additionally, it provides the choice to email or print a receipt.

Accepting credit cards online without a merchant account

Using a payment service provider like PayPal, Stripe or Shopify is the easiest way for any retailer to take online payments. If you don’t have a terminal for customers to swipe a card, you need to build payment processing into your website, and payment service providers are the easiest way to do that. Most contemporary website builders like Shopify and Squarespace come with integrated payment service provider connectors. Some website builders may have limited combinations, so if you want to use a specific supplier, research your alternatives before starting work on your website. By connecting to your payment account, you can take payments from your online storefront even if your website’s integration with payment service providers is not optimal. To create a reasonably seamless purchasing experience, most payment providers allow you to add a “Pay Now” button that guides clients through the payment process. However, you may need to work harder to maintain your orders and inventory.

Personal Mobile Payment Processing

Imagine if you don’t have a storefront or cash register, and you sell goods through a marketplace, you can still accept credit cards. Using your mobile phone with a mobile payment processing app, you can turn your phone into a mobile card reader. tapeeno, an app that enables you to turn your phone into a mobile card reader to accept contactless card payments in an easy and convenient way. tapeeno is an effective alternative to taking cash within your small business. Also, all payments are credited to your chosen bank account within one hour. So, if you think tapping into the phone app is right for your business, you can set up your tapeeno account and start making payments within 24 hours.

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