Credit Card Processing: Payment Processing That You and Your Customers Will Love
So you’ve decided to upgrade your business by accepting credit card
payments. You’ll undoubtedly reap the benefits that countless merchants
just like you have experienced. This is a form of payment processing
that you and your clients or customers will love. Keep reading to learn
about the ins and outs of credit card processing.
processing is a multi-step process that involves the business and credit
card processing company. As you know, credit cards are a form of
payment that allows holders to delay payment according to the amount of
credit that the financial institution or retail store allows.
cards were first introduced in the U.S. in the 1920s as an extension of
gasoline store credit. The first card was directly connected to a
single gasoline company. Next, retail companies began offering credit
cards to customers. Eventually, general purpose cards were created.
These allowed cardholders to purchase items on credit at a wide variety
of suppliers. Although credit card use is rampant in the U.S., Canada
and Europe, it isn’t as popular in some other countries, such as Japan.
order for businesses to accept credit cards, they must sign up with a
credit card processing company. There are many companies that meet this
need. First, the merchant receives a unique identification code. Next,
they receive a processing account, and the corresponding equipment
needed to swipe the magnetic strip of the credit card. Merchants pay for
processing based largely upon how often cards are used. Typically, the
card network receives a service fee that is based on a total sales
At the register, or other point of sale, a cashier
enters all the required sales data into the register and totals the
amount of the sale. If a customer presents a credit card, the cashier
accepts it and swipes the card in the processing machine. The machine
submits all the card information and sales data to the credit card
processing company. The processing company relays this information to
the company that issued the credit card, and the customer’s available
balance is checked. If funds are available, the sale is accepted. If
there is an inadequate amount of funds, approval is denied. If the
transaction is successful, the merchant receives an authorization code
via the machine. After the customer signs the receipt, the sale is
Merchants receive the funds for credit card
transactions after they submit a report that summarizes the transactions
for that day. After all credit sales are submitted in batch form, the
credit card processing firm puts a credit in the merchant bank account
equal to the total sales figure, minus processing fees. Typically, it
takes a few days for everything to process and post to the merchant’s
For the utmost convenience, make every effort to
get all of your credit card services in one place. Most of the leaders
in the credit card processing industry offer all-in-one service. If you
don’t choose a company that offers all the features and services you
need, then your business – whether new or old – will likely suffer. The
application process for nearly every company is free of charge. Avoid
companies that make you jump through hoops to apply. Applying should be a
quick and easy process.
We all know that credit cards basically
trump cash. Paying by credit or debit card is more popular than ever. If
you don’t accept these forms of payment, then your business will
unquestionably take a substantial hit. Why would you want to lose
valuable customers simply because you don’t accept credit or debit
cards? It’s a ridiculously easy process. Make the right choice and start
the application process today. Your business certainly won’t suffer
from it. Rather, it only stands to benefit from this wise choice.
are many ways your sales benefit from accepting credit cards. First
reason: convenience. More and more customers are opting not to carry
cash. Simply carrying plastic allows them to purchase whatever they want
at any time. If your business accepts credit cards, you can accept
funds anywhere and anytime. It’s a win-win situation. Another great
reason: credit cards have no geographical boundaries. A man in
Massachusetts can purchase an item from your store in Texas if you
accept credit cards. Sure, this is a hypothetical situation, but you get
the point. And if you have a web site that accepts credit cards, the
sky’s the limit! With online ordering, you’ll almost certainly gain a
customer base you never thought possible.
Whatever type of
business you own, there’s a payment processing solution available to
you. Retail, online, telephone, hotel, non-profit, food and beverage…
the list goes on and on. If you can think up the type of business,
there’s a credit card acceptance method to go with it.
Contact a merchant account company today, and you’ll be processing credit card sales in no time.