The Franchise King®

Franchise Q And A: How Do I Set Up My Franchise To Take Credit Cards?

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I haven’t been able to locate a franchise business in the US that only accepts cash for products or services.

And, I don’t expect to.

(This post may contain affiliate links. Please read my disclosure policy).

Franchise businesses are modern businesses that are fantastic at responding–and then adapting to current market conditions.

For example, franchisees of gas stations were among the first to install credit card machines right at their gas pumps…a 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’s the norm, all over the country, and it has been for years.

Fact: The first “Pay at the pump ” transaction occurred in 1986. (Wikipedia)

Let’s see how you can setup your franchise to accept credit card payments.


A Credit Card Transaction Lesson

The first thing you need to do is get educated on the credit card payment and acceptance process…the transaction itself.

Fact: Credit card transactions happen in a two-stage process.

1. Authorization
2. Settlement

Here’s how it looks, courtesy of National Bankcard:


credit transactions



1. Merchant (the franchisee) submits their customer’s credit card transaction through the credit card terminal, POS system, etc.

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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).

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

4. The credit card issuing bank approves or declines the transaction and passes it back through the Credit Card Interchange network.

5. The Credit Card Interchange network relays the transaction information to National Bankcard’s Processor.

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.

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.

That’s how things happen electronically…behind the scenes, the second after your customer’s card is swiped through your credit card machine.

Now, let’s go back to the question that’s been posed to me numerous times over the years-from clients of mine.


How Do I Set Up My Franchise To Take Credit Cards?

In order for you, the franchise owner, to accept credit cards, you have to open what’s called a “merchant account ” 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.

National Bankcard Is an ISO

ISO stand for “independent sales organization. ISO’s like National Bankcard, specialize in merchant account services.  They 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.

National Bankcard also has one of the largest chargebacks and fraud departments in the industry. That’s huge, especially nowadays. Do you remember what happened to Target®?

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.


National Bankcard Benefits

National Bankcard works with franchises like Subway®, Taco Bell®, KFC®, and Comfort Inn And Suites®, to name just a few. They know how to set things up for a franchise business.

Here’s what National Bankcard offers, as of this writing:

  • Rates starting as low as 0.25%
  • Free credit card terminal – a $400 value
  • No contracts and no cancellation fees
  • 24/7 Expert customer service
  • A+ BBB Rating
  • Solutions for all types of merchants – retail, wireless, online, etc…

National Bankcard provides franchise businesses comprehensive payment processing solutions.


Credit Card Processing for Less at Only 0.25% AND Free Credit Card Terminal


As a franchisee, once you sign-up with National Bankcard, you’ll be able to accept all types of payments including credit, debit and checks and you’ll also have the ability to deploy state of the art terminals, printers, Pin pads and check readers…all with features specific to your needs.

It’s one thing to setup your new franchise business. It’s quite another to set things up to get paid.

National Bankcard can set things up to make it happen.

Credit Card Processing for Less


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franchise article written by joel libava
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joel libava

I'm The Franchise King®, Joel Libava. I help prospective franchise owners avoid bank account emptying mistakes.
For 23 years, I’ve been showing people how to make smart, informed decisions on franchises to buy, and I can help you, too!
P.S. I'm not a franchise consultant/broker.

Joel is Highly Principled
There are many people in the franchise business who claim to to be experts in the field. Unfortunately many of them lack both knowledge and integrity. Joel, however, is without question one of the most qualified and principled people I know, in or out of his industry."
- Greg Reynolds, Retired Outplacement Counselor
"Many receive advice, only the wise profit from it."
- Harper Lee