Credit Card Processing And Accepting Payments

By Kelly Davis

Traditionally, for a business to process credit cards, there had to be a credit card terminal, or point of sale system, physically at the place of business that the customer had to swipe their card through. This method is perfectly acceptable to any business which is a traditional brick-and-mortar setup. However, for businesses which travel to their customers, like plumbers, cable technicians, home repair, mobile auto detailers, and so on, there becomes a problem. It is best to collect the money at the time the service is rendered. For mobile businesses, without a terminal, the customer's credit card number would have to be written down and charged later which leaves the door open for many problems. Two other types of businesses that need the ability to process credit cards, but cannot physically swipe the customers card are online stores and phone order companies. The aim of this article is to make the reader aware of the various payment acceptance methods of merchant credit card processing.

Retail credit card processing is the standard method of accepting merchant credit card payments. With this method the business has a card terminal, or point of sale system with integrated card reader, physically at their place of business. When a sale is made, the customer swipes their card and the terminal connects to the payment processor via dial up modem or dedicated internet access. This is the most straight forward solution for any standard brick-and-mortar business in which customers come to the store. Examples of stores like this are: convenience stores, auto repair shops, clothing stores, etc.

Wireless credit card processing is a credit card terminal that has the ability to connect wirelessly to a payment processor. Usually these types of terminals connect via an AT&T or Verizon service plan that is included with the monthly price of the terminal. This type of merchant processing is ideal for businesses who travel to their customers. Rather than having to carry cash, worry about theft, invalid card numbers, or bad checks, the customers card can be ran on the spot. If the card is invalid, or has insufficient funds, the terminal reports that immediately. Wireless merchant accounts make doing business on the go much easier.

Online merchant accounts are geared mostly toward online businesses. The types of accounts, in their simplest form, come with an online virtual terminal with their payment gateway. Two popular payment gateways that offer virtual terminals are Authorize.net and Linkpoint. The virtual terminal lets a business log in from any internet connection, via a web browser, and type in the customers information into the virtual terminal for processing. The virtual terminal replies immediately to whether the card was successfully processed or not. For online stores, and more advanced users, the payment gateways can be directly integrated via programming and API calls, to an online store. This type of merchant service also works well for mobile businesses because, with a laptop and wireless internet connection, the virtual terminal can be used from anywhere. However, using the virtual terminal, rates are usually higher than using a standard wireless credit card terminal.

MOTO (Mail Order, Telephone Order) credit card processing is for exactly that: businesses that handle mail orders or telephone orders. This type of processing is much less popular due to the popularity of website ordering. Merchant service providers usually view MOTO processing as a higher risk of chargeback or fraud because the customers card is not physically required, in any way, to process the transaction. Typically rates for MOTO accounts are higher than standard retail or online merchant accounts.

A new type of card processing emerging, due to the popularity of smart phones, is mobile card processing. This type of processing is very similar to wireless credit card processing in the sense that a business can travel to the customers and accept payments on the fly. The difference is, however, the processing program is downloaded as an app on a smart phone (Android, Blackberry, or iPhone). The app's have many more features than a standard hand-held credit card terminal and give users the ability to view detailed reports, customer search queries, and more, from the palm of their hand. The most popular mobile credit card processing app is Payware Mobile for the iPhone. Payware Mobile is available through many merchant service providers.

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Retail Merchant Accounts And Credit Card Processing

By Kelly Davis

Retail merchant accounts are considered relatively low risk merchant accounts and setting them up is fairly simple. There are a lot of options available with the best rates. Despite the low risk associated with retail merchant accounts, there are a few pitfalls that one must be aware of, in order to avoid them effectively. Following are a few measures you can take to ensure smooth working of your retail merchant account.

You would obviously want to have a retail merchant account with a local bank with which you have a decent long business relationship. However, small banks usually do not offer merchant account services themselves, but work for larger banks for commission for very merchant account they outsource to them. It saves a lot of time and money by directly approaching the larger bank for their merchant account services. This will, in the long run, add to your money making process that will considerably generate profits.

You should be very careful while negotiating fees associated with retail merchant account. Different banks and financial institutions have different policies and rates. As a retailer, you will be charged the discount rate for processing credit cards.

A retail merchant account is required to provide an estimate of the sales volume and average ticket cost. This is of most importance as the difference between the predicted amount and the actual sale is large. Due to this the merchant can have problems in future.

To facilitate easy movement, avoid associating with a retail merchant account processor that tries to tie you down with a heavy cancellation fee. Certain service providers automatically renew your retail merchant account. If you do not want such a renewal, discuss the options for cancellation prior to setting up an account.

It usually takes a couple of weeks to set up all the aspects of a retail merchant account, delivery of the credit card terminal, and more. Thus, a smart merchant would be one who sets up his retail merchant account a few weeks prior to the starting day of business. Applying in advance will have you all set in time, ready to accept payments through credit cards the very first day of opening shop. You will notice the sales shooting up with time and your business is sure to run smoothly with credit card processing.

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Selecting The Right Credit Card Processing Equipment

By Joe Maldonado

It is important for any business to become educated on credit card processing equipment, because the most common method of payment today is through credit cards. By using plastic for a payment method, customers have the ability to make purchases without carrying around large amounts of money with them. It is essential to have the right machine for processing in order to successfully complete such transactions. The whole system of credit card processing relies heavily upon the equipment used.

Once you have gotten the necessary equipment and can offer customers the ability to use credit cards as a form of payment, you will be able to attract even more customers because of the fact that this is the preferred method of payment for most people. The vast majority of shoppers these days do not even carry other forms of payment, so if you do not have the equipment to accept credit cards, you are most likely missing out on a great deal of business and profits.

There are several different types of credit card processing equipment. There have been so many advancements in technology, and as a matter of fact the trends in technology are constantly changing. This is why the whole process of taking credit cards for payment has also changed and seen a great deal of advancement. With the use of such equipment, customers are now able to rely on a much safer and quicker transaction process.

There is a certain type of equipment called proprietary equipment. This type of machine may only be used with a select few credit card processors. This is why you will most likely want to avoid purchasing this type of equipment. You do not want to be so limited in the way of what you are able to accept.

There are some machines that you can get which will offer you the ability to switch credit card processors if you have the need to do so. Plus, it will be important for you to choose the equipment that will enable you to accept all of the most commonly used credit cards.

If you can get good service and quality equipment it will be well worth any additional money that you have to spend. You actually have to get equipment with a decent amount of memory, as any credit card terminal is going to require that you have a set amount of memory available.

Additionally, you should probably refrain from purchasing any used equipment when it comes to accepting credit cards. First of all, it will most likely lack the memory that you need. Also, you would be wise to purchase equipment that comes with a warranty and protection plan.

Every individual company will have its own set of charges and specific policies to consider. For this reason, you need to make sure that you ask plenty of questions regarding the company's specific policies and charges.

By purchasing the proper credit card processing equipment, you will not only be adding credibility to your business, but you will also be providing your customers with a safe and easy way to make purchases.

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How Online Credit Card Processing Works

By Joe Maldonado

Due to the fact that online purchases are becoming more and more common these days, it is important for you to educate yourself regarding the process of online credit card processing. Many people find online purchasing to e the most convenient way to shop, and generally customers will use their debit or credit cards to make this type of purchase. As a matter of fact, the most common way for people to make their purchases online is through the use of a credit card.

There is a certain process that al credit cards go through during each transaction. In most cases there will be certain requirements that every Ecommerce website must have in order to complete such a transaction. There always needs to be an established account with a payment gateway. There must additionally be a vital tear sheet to the gateway that can be drawn from the appropriate financial institution. Additionally, there will have to be a server that is enabled by SSL.

Generally, gateways online will offer an API for the process of the transaction. However, in some instances there will be a web based interface offered. Even though a great deal of these transactions occur on a regular basis, each one will have the same basic steps to complete.

When it comes to online credit card processing, the customer's credit card information is collecting using an HTML format. Once the person's information has been collected, it gets transferred to the server to get processed. At this point, the customer will be prompted to enter the required details on the form, and then in order to submit it they will need to click on a submit button.

Once the server receives the data it will be sent to specific areas within the server to get processed. At this point, the information provided by the customer has to get validated. Once the code has been checked it changes into a different format that can be easily understood by the gateway. This is how the information gets checked for validity.

Once it has been established that there are sufficient funds to handle the transaction there will be a message of confirmation sent to the code for processing. Generally the merchant will be charged a fee for this. Sometimes the merchant will have to pay on a per transaction basis, and other times there will be a flat fee to be paid on a monthly basis.

After arriving at the gateway, it will then go through the corresponding clearing house. The decision regarding which clearing house to choose will depend upon what type of credit card is being used and the issuing bank of the card. The clearing houses can transfer money from bank to bank. There will usually be a five percent charge for this service.

The clearing house is then responsible for transferring money from the customer's account to that of the merchant. Generally, the consumer's bank will charge a fee for the service of credit card processing as well, but at this point the entire transaction is complete.

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