|February 24th, 2016|
In spite of its complexity, credit card processing has become a necessity for mostly every business. Credit cards are extremely convenient for the customers to use, and thus they expect everyone to accept credit card. Though, payment through credit card is convenient for the customers, they can be a potential source of frustration and expense for you. It is essential to choose the processor that can provide your business with easy service at best possible price.
4 ways to accept credit cards
• Point-of-sale (POS) systems- Point-of sale is a complete checkout terminal best for businesses with numerous brick and mortar stores. It can connect multiple locations or cash registers to each other. The terminal includes credit card swiper, touch screen, barcode scanner, cash register and much more.
• Mobile credit card processors-An app or device which lets you accept credit cards anywhere using a smartphone or tablet. It generally needs a credit card reader that is attached to your phone. It is perfect for business that prefer making transactions at different physical locations.
• Credit card terminal-Credit card terminal is perfect for the business that requires a device for only accepting payments. These devices are used to swipe credit cards in person and it requires a merchant account to complete the transaction.
• Online payment -Any businesses that have their presence online needs to accept online payment. Stand-alone e-commerce sites that use shopping cart software may need a merchant account for seamless transaction.
Know the key players
Every time you accept a credit card or a debit card payment, several organizations are involved. They work together to complete the transactions without creating any hassle for the customers. The key players include:
• Acquiring bank (merchant bank)
• Issuing bank (cardholder bank)
• Acquiring processor
• Card associations (Visa and MasterCard)
How credit card processing works?
Credit card processing involves various steps. As so many players are involved for single transactions, the complete procedure is little bit difficult to understand. The entire cycle-from the time you slide your card until a receipt is produce. It takes two to three seconds to complete the whole transactions.
Customer pays through his credit card: firstly, the customer makes a purchase on merchant site and makes the payment using his or her credit card.
Payment gateway: merchant site payment gateway sends payment authorization details to the payment processor.
Processor payment: once payment authorization details are received, the processor sends transaction details to credit card network such as Visa, MasterCard, etc.
CC Network- credit card network then authorizes the payment request. Then the requested amount is debited from the cardholder’s bank account. Later, the credit card network sends back payment approval confirmation to payment processor.
Processor: after the credit card network approves the payment, payment processor confirms payment approval to merchant site.
Merchant site: once it is approved, merchant site ships the product purchased to the customers. However, the funds are transferred into merchant bank account within 2-4 working days.
Drop Your Further Queries and Contact the Professionals of Paycron.