Before you configure your business to accept credit card payments, you will have to decide which type of payment processing solution suits your needs. Processing solutions provide the means for a business to process credit card payments. If your business will be a face-to-face retail store, it will require the installation of hardware solutions. If you plan on selling only online or via the phone, you will need a software solutions package.

Processing Credit Card Payments

Hardware solutions include a point-of-sale credit card terminal. This is a device equipped with a magnetic strip reader, keypad, and receipt printer. Although hardware terminals can pull the card's data directly from the magnetic strip, the card need not be present. The keypad allows for the credit card number to be entered manually. Most terminals require a phone line for transmitting information to the card provider, but some versions are capable of operating over a wireless network.

Credit card processing software can be used for "card absent" transactions, such as sales conducted over the Internet or by phone, or they can be integrated with a hardware terminal. When a software processing solution is integrated with a hardware terminal, it can provide greater flexibility, as well as more specialized data retrieval. Before you purchase a software solution, you should decide on a third-party processing organization. Most third-party processors have their own software that is exclusive to their system.

Internet processing is also available as an alternative for online merchants. Internet processing is conducted through a third-party, and provides real-time verification. Internet processing works in conjunction with virtual terminal and virtual shopping cart software, which can often be obtained from the processing provider.