Merchant Account Credit Card Processing
For Business
Credit cards are the most common form of
plastic money used for most of the e -commerce
transactions today. By establishing a merchant
account, merchants are enabled to accept
payments through credit cards. Merchant
account credit card processing takes place
through a simple to use networked system
and structure that enables payment through
a plastic card with minimal chances of misuse
and fraud.
Types of Credit Card Processing
Credit card processing is of two types:
Offline Credit Card Processing
It’s not the instant type of processing.
Transactions are first grouped and then
processed together at physical location.
Payment gateway is not required for offline
credit card processing. As compared to online
processing it’s a cheaper method bur
requires more time to process.
Real Time Credit Card Processing
Credit card orders are processed automatically
and authorization is done immediately. Online
processing is also known as merchant account
credit card processing as it requires merchant
account to process the payment. Merchant
accounts are tied with the credit card processors.
After card verification and approval customer
receives immediate notification that the
order is accepted and the funds are transferred
from the customer's bank account to the
merchant's account. It’s a complicated
process and requires credit card processing
equipments.
Credit card Processing Goes Through Following
Three Channels
For complete credit card processing for
business there are three particulars channels
the payment goes through:
Card Provider: Some of
the well known credit card providers are:
VISA, MasterCard, JCB, American Express
etc.
Card Issuers: Financial
institutions such as banks issue a MasterCard
or VISA or any other card to customers.
The cards have logos of both the financial
institution and the card provider.
Card Acquirer: The processor
of the cards accepted by any store is known
as card acquirer. The service is known as
credit card processing or merchant account
services.
Merchant Account: The
merchants have an account with a credit
card processing service provider to enable
their credit card payments to process.
Merchant Account Credit Card Processing
Credit Card Processing Terminals
Credit card processing for any business
requires a credit card terminal, phone order
processing, or a wireless credit card processor.
All of them work almost on similar pattern,
the only difference is the credit card machine
used. In case of credit card terminals used,
the consumer swipe the card through the
reader, the machine processed the credit
card transaction with the card association,
and then acquired authorization from the
issuing bank. After approval the concerned
bank transfers the amount of the purchase
to the merchant’s bank.
Internet Credit Card Processing
There is no machine to swipe the credit
card through when it comes to online credit
card payment method. Consumer subscribing
for a product or services has to fill out
a form with some personal particulars along
with credit card details. After submitting
the card information the information goes
through the payment gateway for approval.
When the payment is approved, the issuing
bank transfers the amount of the purchase
to the merchant’s bank.
Credit Card Processing via Phone
In mail order or telephone merchant accounts,
the consumer provides the credit card details
on phone instead of entering it on a website.
After the merchant enters the credit card
information into their network, the process
is the same as retail merchant accounts
and online merchant accounts. On successful
completion of credit card approval the payments
is successful and get transferred to the
merchant’s account.
Summary: Credit card
payment is almost mandatory for any business
payment processing. Credit card payments
can be processed via three different channels
namely online credit card processing, processing
through credit card processing machines
or credit card processing on phone.
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