{"id":12972,"date":"2014-06-05T01:53:35","date_gmt":"2014-06-05T01:53:35","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=12972"},"modified":"2014-06-05T01:53:35","modified_gmt":"2014-06-05T01:53:35","slug":"franchise-q-set-franchise-take-credit-cards-2","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/franchise-q-set-franchise-take-credit-cards-2","title":{"rendered":"Franchise Q And A: How Do I Set Up My Franchise To Take Credit Cards?"},"content":{"rendered":"

(Sponsored Post<\/em>)<\/p>\n

I haven\u2019t been able to locate\u00a0a franchise business<\/a>\u00a0in the US that only accepts cash for products or services.<\/p>\n

And, I don\u2019t expect to.<\/p>\n

Franchise businesses are modern businesses that are fantastic at responding\u2013and then adapting to current market conditions.<\/p>\n

For example, franchisees of gas stations were among the first to install credit card machines right at their gas pumps\u2026a long time ago. Consumers were tired of walking all the way to a gas station just to pay for their gas. They wanted-and demanded, convenience. Now, it\u2019s the norm, all over the country, and it has been for years.<\/p>\n

Fact: The first \u201cPay at the pump<\/i> \u201d transaction occurred in 1986. (Wikipedia<\/i><\/a>)<\/p>\n

Let\u2019s see how\u00a0you<\/i>\u00a0can setup your franchise to accept credit card payments.<\/p>\n

 <\/p>\n

A Credit Card Transaction Lesson<\/h2>\n

The first thing you need to do is get educated on the credit card payment and acceptance process…the transaction itself.<\/p>\n

Fact:<\/b>\u00a0Credit card transactions happen in a two-stage process.<\/p>\n

1. Authorization
\n2. Settlement<\/p>\n

Here’s how it looks, courtesy of\u00a0National Bankcard<\/b>:<\/p>\n

 <\/p>\n

\"credit<\/a><\/p>\n

 <\/p>\n

So…<\/p>\n

1. Merchant (the franchisee<\/i>) submits their customer’s credit card transaction through the credit card terminal, POS system, etc.<\/p>\n

2. National Bankcard’s Processor submits the transaction to the Credit Card Interchange network (a network of financial entities that communicate to manage the processing, clearing, and settlement of credit card transactions<\/i>).<\/p>\n

3. The Credit Card Interchange network routes the transaction to the customer’s credit card issuing bank, to make sure enough funds are available.<\/p>\n

4. The credit card issuing bank approves or declines the transaction and passes it back through the Credit Card Interchange network.<\/p>\n

5. The Credit Card Interchange network relays the transaction information to National Bankcard’s Processor.<\/p>\n

6. National Bankcard’s Processor then sends either the confirming approval number back to the merchant’s credit card processing equipment, if the funds are available, or a decline message, if they’re not.<\/p>\n

Next, the funds are transferred from the customer’s credit card issuing bank through the Federal Reserve System and are deposited into the franchisees checking account. Figure on getting your money in approximately 48-72 business hours.<\/p>\n

That’s how things happen electronically…behind the scenes, the second after your customer’s card is swiped through your credit card machine.<\/p>\n

Now, let’s go back to the question that\u2019s been posed to me numerous times over the years-from clients of mine.<\/p>\n

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How Do I Set Up My Franchise To Take Credit Cards?<\/h2>\n

In order for you, the franchise owner, to accept credit cards, you have to open what’s called a “merchant account<\/i> ” with a bank. It used to be pretty easy to do. Now, not so much. That’s because a lot of banks have gotten out of the credit card processing business. But, have no fear. You can still open a merchant account. Just go through a company like National Bankcard.<\/p>\n

National Bankcard Is an ISO<\/b><\/p>\n

ISO stand for “independent sales organization.\u00a0<\/i>ISO’s like National Bankcard, specialize in merchant account services. \u00a0They help small businesses, franchises, get setup to accept credit cards. But, you’re going to need something else from an ISO. You’re going to need to make sure that your credit card transactions are secure.<\/p>\n

National Bankcard also has one of the largest chargebacks and fraud departments in the industry.\u00a0<\/b>That’s huge, especially nowadays. Do you remember what happened to\u00a0Target<\/b>\u00ae?<\/p>\n

When it’s time to get your franchise business setup to accept credit cards, call on National Bankcard. They’ll get you up and running.<\/p>\n

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National Bankcard Benefits<\/h2>\n

National Bankcard<\/b>\u00a0works with franchises like Subway\u00ae, Taco Bell\u00ae, KFC\u00ae, and Comfort Inn And Suites\u00ae, to name just a few. They know how to set things up for a franchise business.<\/p>\n

Here’s what\u00a0National Bankcard<\/b>\u00a0offers, as of this writing:<\/p>\n