Credit Card Processing
In today’s fast paced and competitive business marketplace, it is almost a necessity for any business to have a merchant account and accept credit cards. A documented 80% of all retail customers pay with their credit and debit cards, and they will go to one of your competitors if you don’t accept credit cards. To accept credit cards, the first thing you need is a apply for merchant credit card processing account. Credit card processing companies, give businesses the ability to accept credit cards as well as debit cards, smart cards, and electronic benefits transfer (EBT) by providing them with merchant accounts. When you call or complete our online quote form to request a merchant account, you will be contacted by a specialized merchant account representative. He or she will ask a few questions about your business, and answer any concerns you might have. Your application to accept credit cards will then be submitted for approval. Merchants are typically notified of approval or decline within 24 hours of submittal. Once the submitted merchant credit card processing account is approved, your newly assigned sales representative will contact you immediately. Any credit card equipment ordered will be directly shipped to your business site so that you may immediately begin to accept credit cards.
Credit Card Processing - The credit card authorization process
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Ever wonder how credit card authorization really works and where does the credit card information go once you enter it into a credit card terminal or POS? When a credit card is swiped and a credit card authorization process is initiated, the information is sent directly to a credit card processor. From there, the information is transmitted to the card-issuing bank through a bankcard association, where the transaction is either approved or declined. Finally, the bankcard association transmits the approval or decline back to the terminal or POS device.
During the credit card authorization process, a card may decline if it is expired or has insufficient funds. The transaction may also be declined if the card has been reported missing or if there has been suspicious activity on it. To further protect your business, banks now require credit card authorization for all paper-based transactions. In order to process credit cards and initiate a credit card authorization, a business must sign apply for, and receive, a merchant account. Once a merchant account is set up, credit card authorization may take place through the use of an equipment terminal or point of sale hardware.
Credit Card Processing - Retail credit card processing
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If you are doing business face-to-face, credit card processing has become a necessity. Whether you have a store, restaurant or kiosk, our merchant account providers can help your business set up a merchant account and accept credit cards for less money than you think. The process for retail credit card processing is as follows:
1: The merchant slides the customer's card through the credit card terminal and enters the sale amount. The terminal then connects to the merchant account’s processor for authorization. The processor passes that information onto the bank that issued the credit card where the bank checks to see if the card is valid and see if the charge amount is available on the card.
2: The issuing bank sends back an approval number or a decline message to the merchant accounts’s processor.
3: The information is passed back to the credit card terminal which prints a receipt for the customer to sign if the card is approved. It takes approximately 12-15 seconds to complete these steps on a credit card machine using a phone line. The newer internet enabled machines can cut this time to just a few seconds.
4: At the end of the day the merchant must "settle" or "batch out" their terminal which will begin the final process of the transaction. In most cases the merchant account provider can automatically settle the transactions at a specified time each day. Once the settlement process is initiated the funds are transferred from the card issuing bank and are electronically deposits them into the merchant's checking account. It typically takes no more than two business days from the time of the original transaction for the funds to reach the merchant's checking account.
Credit Card Processing - Online credit card processing
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If you have an Internet store or own a retail e-commerce website, you will need online credit card processing. With the help of an online merchant account and credit card payment gateway, you can give your customers the option to purchase goods with the click of the mouse, at any time, day or night. Our merchant account's can provide you with an online merchant account and the ability to do online credit card processing, no matter how small or how large of a website you have. The process for online credit card processing is as follows:
1: The online customer finds the merchant's website and adds products to their shopping cart. When they are ready to check out, they enter their billing information.
2: If the merchant does not have a secure page, the customer can be transferred to a secure payment gateway. If the merchant does have a secure site, then the information will be "passed" to the payment gateway without the customer ever leaving the merchant's site.
3: Once the billing information has made it to the payment gateway, it is then transmitted to the processor.
4: The processor passes the information from the online payment gateway onto the bank that issued the credit card, which verifies that the card is valid and that the amount requested is available on the card.
5: The bank sets aside the purchase amount for the merchant, then sends back an approval number or a decline message to the processor. Within 3-15 seconds, the information is passed back to the gateway.
6: The gateway passes the approval code back to the merchant's site or, if the merchant does not have a secure site, gives the customer their approval information. At this point, the merchant can also choose to have the payment gateway email the customer a payment receipt.
7: Final payment is secured and is deposited in the internet merchant’s account. It typically takes two business days from the time of the original transaction for the funds to reach the merchant's checking account.
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