Get Credit Card Processing Companies for Your Business

By Rika Subana

merchant credit card processing companies

So you want to sell your products online? Then you need to accept credit card payments and other possible forms of online payments. Credit card processing companies are those service providers which permits a trader to accept credit cards from the customer as a payment mode for easy money transaction. The basic reason behind the popularity of credit card processing companies is the fact that credit card processing can be done from any part of the globe within no time. Also, both the customers and traders are aware of the safe and secure payment option of credit cards.

But before utilizing the power of credit card processing to grow a business, a trader needs to have a merchant account opened up with a credit card company. When you own a merchant account, credit card processing companies will then allow you to accept credit cards for payments against your goods or services. Banks, associations, third party and many more are few of those credit card processing companies which offer a trader merchant account on feasible rate and benefits.

For starters, many banks won’t offer merchant accounts directly to small businesses. Instead, small businesses need to go through third party providers who secure the merchant account for you. Also third-party services are more affordable for online small business owners.

But, before you choose one of credit card processing companies, go through the terms thoroughly:

• Set up fee: Some companies ask for an upfront amount for registration for their services. Others don’t require any set-up or registration fees.
• Transaction fee: Most payment processors charge a certain amount for processing that is done through them from your website. This is usually a percentage of the total transaction amount and can range from as low as 2% to as high as 20%.
• Other associated fees: Some credit card processing companies also collect other fees that may not be stated clearly.
• Products: Check the type of product that the company will let you sell. Some companies have no restriction over the kind of products sold through them.
• Payment transfer: Different credit card processing companies have different methods of transferring credit card processing to its clients and charge various fees for the service. You can ask the processing company to mail the check or request an ACH transfer to your bank. In case you are an international customer, you can ask for an international wire transfer.
• Payment frequency: Different credit card processing companies have different payment frequency. Some pay immediately after the customer makes the payment, some make in weeks and some in months.
• Customer Service: It is essential for good credit card processing companies to respond promptly to inquiries and to be customer friendly and reliable. The company should preferably have a reliable support system in place and respond to inquiries within 24 hours.

Article You May Be Interested In Reading: Internet Merchant Account and Credit Card Processors!

Credit Card Payment Processing Tips

By Rika Subana

credit card payment processing solutions

Credit card payment processing is the most preferred mode of payment among customers and traders across the world today. Basically, there are two types of credit card payment services. Those are manual payment processing and real time payment processing.

Manual payment processing is submitted through the phone is processing manually. This is done either by contacting the payment processing company to verify the validity of the card or by keying the card manually at the sales terminal. This processing network basically comprises of credit card holder, credit card provider or bank and the merchant account owner or trader.

Manual processing can be time consuming but is relatively risk free due to complete control of the merchant during the entire process. The payment processing time taken will be more then what real time payment processing will take.

Real time processing is basically an automated process, where the credit card is automatically processed once the customer submits the number. As soon as the credit card is authorized the funds are transferred from the customers account to the retailers account.

Real time payment processing is quick and is ideal for businesses where a large number of transactions take place. It is not just a comfortable mode of payment but also a safe one too. These series of steps behind the finger snapping speed of payment via credit card does not just save a trader from fraud or illegal payment but also keeps the credit card number of a customer safe and allows cash free movement while shopping.

Following are the steps that are performed before a customer gets to enjoy his/her purchase:

• The trader swipes the customer’s card through the credit card processing machine and then he dials the credit card number.
• The credit card company scans the customer’s account details, the amount of money available in his account, the validity of the card and the credibility of the card being used for purchase.
• Once the bank is done with its inspection, it gives a green signal to the trader to accept the customer’s purchase and to release the service to him.
• Bank also adds the pre-settled commissioned amount to the trader’s merchant account as the credit card payment takes place.

Credit card payment processing may sound a benefit for a customer but in reality, it supports a trader the same way it facilitates a buyer. Following are the benefits of credit card payment processing for both the trader and the buyer:

• It permits shopping without the need of carrying heavy cash.
• It permits shopping even when a customer gets short of money.
• A customer can immediately call the bank and block the access to its account, if stolen.
• It boosts the image of a business as it acts as a status symbol for shops and retail stores.
• It increases the sale, as customers always tend to spend more than they plan.
• It adds a commission into the business owner’s account.
• It allows trading outside the office environment via mobile credit card processing equipment.

Check out my other guide on Credit Card Payment Processing!