Owing to a business these days means accepting credit card payments. The reason is, the ease and comfort of card payment that have replaced physical cash. Moreover, card payment done through reliable portable card machines makes it convenient for the customers to buy products and services anytime they want.
However, before getting with this system or you can say merchant services; the first crucial step is choosing the right card processing company.
The cardholder is the starting of a five-party chain that leads to a business getting paid. When the cardholder swipes the card at the merchant terminal, information is sent to the processing service. For approval, this service then further sends the information to the card association. After the approval, this information is transferred to the card issuer for payment. Now, the issuer makes the payment to the merchant and bills the cardholder.
Though accepting cards seems easy, there's so much involved in the process. For instance, a credit card number is entered into the terminal, which is then transmitted to the card association for authorization. However, the transaction has not been done yet. Every detail related to the transaction is saved in the memory of the terminal (in batches) which is then sent to the card association for settlement. These batches are given to the right card issuers for payment, which then gets transferred into the account.
Here, it is essential to know that some companies charge an application fee. By checking around carefully, such a fee can be avoided. Moreover, if a business does not process a particular amount each month, an additional fee may be charged.