Payment Processing Basics for Small Businesses|Kimeris
Understanding Payments Shouldn't be Complicated
Every card, mobile wallet, or digital payment your business accepts travels through a sophisticated network-but understanding the basics doesn't have to be difficult.
How Does Payment Processing Work?
When a customer makes a card or digital payment, several steps happen behind the scenes-usually in just a few seconds.
Payment - Customer taps, inserts, swipes, or enters payment information.
Authorization - The transaction is securely sent for approval.
Processing - The approved transaction moves through the payment network.
Settlement - Funds move through the banking system for deposit.
Funding - The business receives the funds in its designated bank account.
Who Is Involved in a Payment Transaction?
A payment may happen in seconds, but several parties work together behind the scenes to securely move the transaction from the customer to the business.
Customer/Cardholder - The person making the purchase.
Merchant - The business accepting the payment.
Payment Processor/Gateway - The technology that securely routes payment information between the parties involved.
Card Network - Networks such as Visa, Mastercard, American Express and Discover that facilitates card transactions.
Issuing Bank - The financial institution that issued the customer's card and approves or declines the transaction.
Acquiring Bank - The financial institution involved in receiving and settling funds on behalf of the merchant.
Understanding Processing Costs & Fees
Accepting electronic payments comes with processing costs. Understanding where those costs came from can help business owners evaluate their payment provider and make more informed decisions
Interchange Fees - Fees associated with processing card transactions that are generally paid to the card-issuing bank.
Card Network Fees - Fees charged by card networks for facilitating transactions across their networks.
Processor Fees - Fees charged by the payment provider for processing services, technology, support and other services.
Additional Fees - Depending on the provider and solution, businesses may encounter monthly, gateway, PCI, statement, equipment or other service fees.
Understanding your true processing cost-not simply an advertised rate-is one of the most important parts of evaluating a payment solution.
Ways Businesses Can Accept Payments
Today's businesses aren't limited to a traditional countertop terminal. Modern payment technology allows businesses to accept payments wherever and however their customers choose to buy.
In-Person Payments - Countertop terminals and POS systems allow customers to tap, insert, or swipe their cards at the business.
Mobile Payments - Mobile terminals and compatible devices allow businesses to accept payments while on the go.
Online Payments - E-commerce stores and payment gateways allow customers to securely pay through a website.
Invoices & Payment Links - Businesses can send customers digital invoices or secure links that allow them to pay remotely.
Contactless & Digital Wallets - Solutions can support contactless payments and digital wallets such as Apple Pay and Google Pay.
Recurring Payments - Businesses that offer subscriptions, memberships or ongoing services can securely automate scheduled payments.
Payment Security & Fraud Protection
Protecting payment information is an essential part of accepting electronic payments. The right combination of technology, security practices, and ongoing awareness can help businesses reduce fraud and protect both their customers and their reputation.
PCI compliance - Following Payment Card Industry Data Security Standards helps businesses maintain a secure environment for cardholder information.
Fraud Prevention Tools - Modern payment solutions can use transaction monitoring, verification tools, and other safeguards to help identify potentially fraudulent activity.
Employee Awareness - Training employees to recognize suspicious transactions, phishing attempts, and improper handling of payment information adds another important layer of protection.
Payment security isn't a one-time task. It requires the right technology, processes, and continued attention as threats evolve.
Choosing The Right Payment Solution
The right payment solution should do more than simply process transactions. It should fit the way your business operates today while providing the flexibility, security, and support needed as your business grows.
Understand Your Business Needs - Consider how and where you accept payments, your transaction volume, average ticket size, and the experience you want to provide your customers.
Evaluate The Cost - Look beyond and advertised rate. Pricing structure, processing fees, equipment costs, monthly fees, and other charges can all affect your true cost of accepting payments.
Consider Technology & Integration - Your payment solution should work effectively with the systems and technology your business relies on.
Prioritize Security - Look for solutions designed to protect payment information and help your business maintain appropriate security standards.
Look Beyond the Sale - Onboarding, technical support, ongoing service, and access to knowledgeable payment professionals can be just as important as the technology itself.
The best payment solution isn't necessarily the one with the lowest advertised rate-it's the one that delivers the right combination of cost, technology, security, service, and long-term value for your business.
Payments Should Work For Your Business
Understanding payment processing is the first step. Having the right payment partner can help turn that knowledge into a solution designed around your business.
At Kimeris Payment Solutions, we take a consultative approach to payments - helping businesses evaluate their processing costs, technology, security, and overall payment experience without making payments another burden to manage.
Whether you're accepting payments for the first time or evaluating your current provider, we're here to help you make an informed decision.
Not Sure If Your Current Payment Solution Is the Right Fit?
Start with a complimentary payment processing review. We'll help you understand your current setup, identify potential opportunities, and determine whether there's a better approach for your business.
