Introducing credit card payments as a merchant

Credit card payments can usually be implemented within a few days

Accepting credit cards offers numerous advantages for retailers, restaurants and hotels. It helps you expand your customer base – as many Swiss residents and international guests prefer making cashless payments. It reduces shopping cart abandonment both online and in brick-and-mortar stores, especially with spontaneous or higher-priced purchases.

Credit card payments are authorized immediately, which can reduce the risk of default that exists with purchases on account, for example. Contactless payments also speed up the checkout process and enhance the shopping experience. The transaction fees are therefore often offset by higher sales, better conversion rates, and a more professional image.

In most cases, introducing credit card payments only takes a few days: You sign an acceptance agreement with a credit card provider, such as American Express, and select a payment service provider.

You then order a card reader or activate your existing terminal, which you integrate into your physical store or online shop. You should allow a little more time for new terminals, custom shop integrations or additional verifications. The process is particularly simple and cost-effective when using SoftPOS technology, which transforms your smartphone or tablet into a mobile card reader for contactless payments – without any additional hardware.

Acceptance agreement: Which credit cards do you want to accept?

For most merchants, it makes sense to allow customers to pay with all major cards to make the payment process as convenient and straightforward as possible. This includes American Express Cards, which are used by affluent, international and business customers in particular. This helps you generate revenue that you might otherwise forgo.

Once you’ve made your choice, you just sign the corresponding acceptance agreements. With American Express this is easy to do online. All you need to provide is some basic information about your business and to indicate whether it’s a brick-and-mortar or online business.

Card readers: your options

If you haven’t yet accepted card payments in your store or are looking to purchase a new card reader, numerous options are available.

The classic option is the stationary model, which is powered via a power outlet. It is largely tied to its location and is intended for businesses where payments always take place in the same spot – such as most retail stores or service providers such as hair salons.

Mobile card readers aren’t tied to a specific location; they can be brought to the customer for the payment process. Depending on the model, they use Wi-Fi, cellular data or Bluetooth to connect to a smartphone or tablet. These devices have become standard for service staff in the gastronomy industry, for example.

Many payment service providers offer these terminals as part of a service agreement for a flat monthly fee. Alternatively, you can purchase the device. You can also use a compatible and appropriately certified smartphone or tablet with the acquirer’s app as a payment terminal.

If you currently accept debit cards, you typically already have a card terminal and a suitable agreement. To allow your customers to pay with credit cards such as American Express, you simply need to have this option activated in your acceptance agreement.

Implementing credit card payments: things to keep in mind

Merchants who store, process, or transmit credit card data have to comply with the requirements of the PCI DSS (Payment Card Industry Data Security Standard). These are the specific requirements of this international security standard for payment transactions:

• CVV, CVC, CID, the PIN, or other sensitive authentication data must never be stored after a payment has been authorized. Whenever possible, you should avoid storing card numbers yourself. If storage is required in exceptional cases, you must comply with the PCI DSS guidelines regarding protection, access, masking, retention and deletion.
• You must restrict access to the terminal management, the store backend and the PSP portal to a small number of people.
• You must use strong, unique passwords and multi-factor authentication.
• You must promptly resolve any errors that arise with the online store, plug-ins, operating systems or routers.
• You only need to fill out the PCI Self-Assessment Questionnaire (SAQ) required by the acquirer; with externally hosted checkouts, there is often less to do.
• If you suspect that card data has been compromised, notify the acquirer or PSP immediately and document the incident.

You should also supplement or update your privacy policy. Above all, this should clearly explain how order and payment data are processed, how long the data is retained, which payment service providers are used, and whether data is transferred abroad.

Introducing credit card payments: The benefits far outweigh the workload

Introducing credit card payments can help Swiss merchants reach a wider customer base, reduce shopping cart abandonment and speed up the checkout process – all within a matter of days. By accepting American Express Cards in addition to the usual cards in your store, you can also tap into an international, business-oriented and affluent customer base.

Depending on your business model, in-store payments can be processed via a certified terminal, while online payments can be handled through a payment service provider (PSP) or full-service providers such as Adyen, SumUp, and Stripe. Existing terminals can generally continue to be used, provided that American Express is explicitly authorized in the acceptance agreement.

Key factors for a smooth and secure implementation also include a suitable payment service provider, transparent billing processes, and strict compliance with PCI DSS and data protection requirements.