Credit cards do not just allow you to purchase whatever you like with just the swipe of a card. It is also a huge business that rakes in billions of dollars each year. One of the ways for you to be able to join the industry is by starting a credit card processing business. Here’s how you can do this.
LCC. First of all, you will need to get information on how you can set up a corporation, or an LCC. Remember, if you are a credit card processor, you will be considered as an LCC at the very least. To get this type of information, visit the local chamber of commerce in your town or city. This way, you will know the rules that you need to follow, and the requirements that you need to meet.
- Bank reseller program. Next, you will need to look for banks that will provide you with reseller programs. Remember, you cannot go into the credit card processing business unless you team up with a bank. There are a number of banks that will let you use their processing services as your own, but in return you will need to pay the bank some fees. This is the easiest way for you to get into the credit card processing business. Tell the bank that you want to make your own brand, and that you will work for the bank as an agent under your company.
- Business plan. Naturally, banks cannot let just about anyone become credit card processors. You will need first to get their approval. In order for you to get this, be sure that you create a detailed business plan that outlines the basics of the business, including the location for the business itself, the amount of money you need, your funding, et cetera. If you are able to make a good and appealing plan, then you get higher chances of getting your credit card processing business approved by the bank.
- Terminal processing companies. Now that you have a bank that you work with, the next step is for you to contact terminal processing companies who will give you the terminals that you can use for your business. The most popular company to go to is VeriFone, but remember that you need to ask your bank first if they have had any prior arrangements with other terminal processing companies. In this case, you will need to go with whatever company your bank has chosen, unless the bank has given express permission for you to choose your own.
- Leasing agencies. Finally, you will need to make a partnership with another leasing agency that will allow you to get your processor leases in place. The leasing agencies will usually have a fee ranging from $40.00 a month or more. Apart from this, a certain percentage from the business will go to the leasing agency.
Credit card processing may be a little bit difficult to get into, but the profit from this business is very large.