3 Ways To-Do Credit Card Processing Without Merchant Account

As a businessman or seller, accepting credit card payments can make it easier for customers. However, for some business people or merchants, using a credit card is inconvenient because it requires a merchant account to process payments. Let’s check the way to do credit card processing without merchant account. 

What is a Merchant Account? 

Did you know the number of credit card users is relatively high, with as many as 2.8 billion credit cards worldwide? This also makes payment by credit card a payment option that is familiar to many people.

The high number of credit card users makes sellers who provide payment by credit card tend to be preferred by consumers because payments are more accessible and more superficial, especially with an online credit card, making payments even more effortless.

Even though paying using a credit card makes it easy for customers, it’s hard to do credit card processing without merchant account. The transaction cannot be processed if the bank providing the customer’s credit card and the merchant account provider differ.

So, what exactly is a merchant account? Merchant accounts are commercial bank accounts that help process transactions using credit cards for businesses. Previously, merchants could only accept credit card payments from the same bank as the merchant account. 

But now, with technological developments, merchants can accept various card payments, including other electronic transactions.

3 Ways To Do Credit Card Processing Without Merchant Account

There are three easy ways to do credit card processing without merchant account. These days, merchants use Payment Service Providers (PSPs) such as Square, Stripe, and others. 

PSPs work similarly to merchant accounts, receiving and storing money from credit card transactions. The difference is that today’s PSPs are easier to use because you can register and manage your account entirely online. 

Plus, they usually don’t charge a monthly fee just to have an account, and they process transactions in addition to keeping your money. Your money will usually be deducted if you make a withdrawal only.

This differs from a merchant account, usually subject to an admin fee from the commercial bank where the account is created. Not surprisingly, PSPs are now quite in demand by many businesses and sellers worldwide. So, here are 3 ways to do credit card processing without merchant account.

1. Accepting Payments in Stores Without a Merchant Account

Modern point-of-sale (POS) systems like Square and Clover come with all the hardware and software you need to process all transactions like cash and credit cards. It’s also easy to register. The best way to do credit card processing without  merchant account for any business!

A simple system like this covers everything you need as a direct retail business: point of sale (that is, your ability to check in on customers), card readers, and credit card payment processors. Mobile POS systems are also available, significantly facilitating vendors on the move.

They typically accept credit cards via chip readers, swipe, or mobile payment readers (tap); let customers authorize transactions by signing on the screen or entering a personal identification number (PIN). 

2. Accepting Online Payments Without a Merchant Account

The easiest way for any retailer to accept payments for online businesses is through a payment services provider such as PayPal, Stripe, Square, or Shopify. Payment service providers are the easiest way to make payments requiring terminals for customers to swipe the card, or when you need payment processing to your website.

Most modern website builders, including Squarespace, Kajabi, and Shopify, have built-in integrations with payment service providers. Integration may be limited for some builders, so check your options before starting on your site if you want access to a specific provider.

If your website needs to be better integrated with payment service providers, you can still accept payments from online storefronts by linking to your payment account. This is the best way to do credit card processing without merchant account. 

Most payment providers allow you to add a “pay now” button on your website that straight to customers through their checkout process so that you can offer a reasonably seamless shopping experience. Still, you may have to do more work to stay on top of inventory and your order.

3. Direct Mobile Payment Processing

If you sell in places like traditional markets or exhibitions that don’t allow cash registers, you can still easily accept credit cards.

By simply using your phone with a mobile payment processing app, you can enter a customer’s credit card information or attach a small card reader where they can swipe their card for your phone to read.

Square is the original mobile payment processor and sets the standard for lightweight and easy-to-use systems. 

Best PSPs for Accepting Credit Card Payments Without Merchant Account

Several PSPs can do credit card processing without merchant account. Here comes the recommendation.

1. Square – Best Choice For Small Business

Square was one of the first third-party payment processors to offer a way to accept credit card payments directly. The system has grown into a full-featured platform for POS, payments, and more products by Square for small businesses.

2. Shopify – Suitable For e-Commerce Business

Shopify is the origin of a top-rated eCommerce platform. It also includes all the features you need to set up an online business and start selling from your website.

While you can use Shopify with almost any merchant service provider, Shopify Payments integrates directly with the Shopify platform and is perfect for a budding eCommerce business.

3. PayPal – Best Payment Ecosystem for All Businesses

An early eCommerce pioneer, PayPal is nearly universal name recognition and offers a complete payment ecosystem for almost any type of business. Not surprisingly, this one payment platform has been widely used all over the world.

Want To Do Credit Card Processing Without Merchant Account? 

So that’s all about how to do credit card processing without merchant account. Now you can consider processing credit cards without a merchant account and helping your business grow even better.

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