What’s Credit Card Processing?

What’s Credit Card Processing?

Many businesses rely on credit processors to manage the details of debit and credit card acceptance. Credit card processing services are an essential service. It allows customers to quickly and easily checkout.

This brief overview will help to understand the basics of credit card processing.

What is the process of credit card processing?

To pay, the customer must first present their credit card information. Customers can swipe magnetic stripe cards in-store and dip EMV chips cards. They can also tap contactless cards and use digital wallets such as Apple Pay mobile payments with their smartphones. Consumers can also present debit and credit cards online via websites or apps through payment gateways. A virtual terminal allows secure credit card processing via a personal computer for phone orders.

The processor receives the payment information and communicates with the bank via the appropriate card networks such as Visa and Mastercard. The transaction is approved or denied by the customer’s bank.

How to assess credit card processors

Credit card processors are often inconsistent in quality, as with any service that is this complex.

Ask these critical questions when evaluating credit card processors or merchant acquirers:

Transaction speed

Strong uptime record

Fair and transparent rates structure

Get helpful customer support

What is your transaction speed?

Customers love the option to pay using debit or credit cards. They also expect payment to be quick. Even small delays can be a nuisance. It’s important to select a processor that can safely process large volumes of transactions accurately and quickly.

Although speed is important, it’s not everything. Sometimes “friction”, such as when it is necessary to protect your customers and your business from fraud, can be good. Security is as important to consumers as a convenience. Both security and convenience should be provided by your credit card processor.

You should look for evidence of reliable uptime

Businesses are affected by outages in the payment system. Credit card processing problems can cause your business to shut down. It’s not only the downtime that is painful. Customers who are turned away by your business during outages may consider you untrustworthy or inconvenient.

Although credit card processing outages are rare they are possible. However, all interdependent systems can be affected by downtime. Ask about the credit card processor’s past uptime and what steps they have taken to reduce service interruptions.

Transparent rates structures

Although credit card processing can seem complicated, the cost of this service should not be. There are many factors that can affect the rates and fees you pay.

Pricing for interchange varies depending on the risk factors that different types of businesses face. Although payment processors may charge additional fees and rates for interchange, interchange costs are set by card brands.

Customer support can make your day or break it

You know as a business owner that maintenance and troubleshooting are essential parts of any system. Modern life includes technology management and dealing with complex systems. It can make a huge difference in your life and your bottom line by how service providers address these issues.

You need to be able to count on real people to help you when things go wrong. They know how payments work, what can go wrong, and how best to fix them. It is important that you can reach someone immediately if you call, whether it is in the middle or on a holiday.

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