Accepting debit and credit cards
Types of plastic card you could accept
There's a wide range of plastic cards on the market and the types of cards you decide to accept will depend on the nature of your business and the agreement with your bank.
Credit cards and charge cards work in a similar way. Both allow holders to make purchases up to a specified limit. The main difference between them is that charge card holders have to pay the balance off in full at the end of each month while credit card holders can choose to pay off a minimum, or other amount.
There are hundreds of providers - though most cards are Visa or MasterCard, issued through a bank or building society.
For details of issuers, you can:
With a debit card a cardholder can only spend the funds they have available in their account (this includes any agreed overdraft facility).
Contactless cards
Contactless is a new feature currently being introduced on payment cards (credit, debit and pre-pay cards) in the UK. Contactless cards make purchases quicker and more convenient for both retailers and consumers. Cards featuring contactless payment technology can be used for transactions of £10 and under and will enable customers to simply hold their contactless-enabled card up to a secure reader to make their payment - without the need to enter a PIN.
Contactless cards provide a fast, effective alternative to cash, reduce queues and utilise the security built into a Chip and PIN card.
If you are interested in accepting contactless cards, contact your acquiring bank. This is the bank that provides the service which allows you to accept card payments for goods and services.
Processing fees can vary widely depending on the type of card and the type of transaction - card present or card-not-present. This is likely to be the key consideration when deciding which cards you will accept and you should research these charges carefully. For example, if most of your transactions are likely to be for small amounts, the higher charges associated with credit cards may mean it doesn't make sense for you to accept credit card payments. For more information, see the page in this guide on the cost of accepting payment by card.
To find out more about card transactions, see the page in this guide: how does the card payment process work?
Subjects covered in this guide
- Introduction
- The advantages and disadvantages of accepting payment by card
- Types of plastic card you could accept
- Accepting card payments: the key steps to take
- Set up a merchant account
- How does the card payment process work?
- The cost of accepting payment by card
- Your liability for disputed card payments
- Safeguards against fraudulent card payments
Actions
- Visa card issuers on the Visa website - Opens in a new window
- MasterCard issuers on the MasterCard website - Opens in a new window
- Contactless cards introduction on the Contactless website - Opens in a new window
- Contactless payment card guidance on the MasterCard ® PayPass website - Opens in a new window
- Contactless payment card benefits on the Visa payWave website - Opens in a new window
- Card processing options on the Retailers and Cards website - Opens in a new window
- Card payment cycle information on the Retailers and Cards website - Opens in a new window
