Credit card processing is an absolute necessity for operating an online business successfully these days and world-over online business has transformed into the order of the day; so let's examine here the salient characteristics of credit card processing and the various solutions available while searching for a credit card processing provider.
Credit-card processing basically
Now, let's assume you went shopping and bought some goods and as usual you take out your credit-card and give it to the business for swiping it for the total amount of the bill. Did you ever wonder what process happens next to transfer the funds out of your account for the merchant’s account? This is what small business credit card processing is all about, it offers for secure transfer of resources from a card holder’s bank account to the merchant’s account towards the total cost of the goods bought or for the services rendered.
What is a payment gate way
To enable the credit-card processing to happen effortlessly all such transactions are channeled through what's known as a payment gateway; this is a service offered for verifying and authorizing all the payments to a merchant’s account. Exactly the same process is adopted for transactions conducted online or in an everyday shop.
Steps involved with this process
The procedure gets initiated when a consumer buys either goods or services using a credit-card.
After checking the consent the payment gate way company routes the transaction details to the business bank’s model who subsequently routes the data to the cardholder’s bank.
Here again the transaction is confirmed and the bank either approves or declines it and this data is passed on to the card processor from where it is again passed on to the cardholder and the business. And if accepted the vendor delivers the goods for the cardholder and the transaction is completed.
Now the bank transfers the funds to the credit-card processing network and from there it reaches the merchant’s bank and this settles the transaction.
Here a couple of recommendations on how-to choose your credit-card processor
Cost and reliability will be the two main aspects you need to study while buying credit card processing. Rates and fees vary considerably hence search for competitive rates and select one which can best support your business needs.
Test the client and tech support team provided by the credit card processing for small business. Make calls at different times of the afternoon on different days of the week and see how quick or elsewhere their reaction is.
Credit card industry is a very complicated one and you've some organizations offering good introductory rates and adjusting them later shocking you, and most documents have a lock in amount of about three years so you cannot go out of it without paying heavy costs towards termination of the contract; try for a company that does not insist on locking you into an agreement. Hence it's vital that you browse the fine print and also ask for testimonials and references before stepping into credit card processing.
To know more information about small business credit card processing Click here.
