Today, we are living in a digital world. As disposable income grows, so does the demand for plastic cash which essentially includes debit and credit cards. Credit cards have been around for a long time but recently they have garnered a lot of popularity due to the ease of usage, especially with the majority of the population opting for online shopping. Many banks also give you multiple offers as rewards for using your credit cards in the form of cashback or reward points, which you can use for many different purposes.
The basics of credit card processing
What is credit card processing?
A lot of small and big businesses depend on credit card processing so that they can speed up and ease out the process of using the card and checking out, for their customers. Credit card processing is a complex procedure and needs the coming together of technology, payment gateway, financial companies, regulatory authorities and more.
Once a customer furbishes his credit card information for payment, this information is further sent to the processor. The processor then communicates with the respective bank using the requisite card network (Visa or Master Card). The bank will then approve the transaction. Of course, this approval is subject to multiple factors like the accuracy of the information, availability of funds, etc. This approval is then sent back through the payment processor to the credit card reader. The customer’s account will be charged for the transaction done. The deposit will then be made into the vendor bank account.
What to Expect from a Right Credit Card Processor
To ensure that your credit card processor is a good one, try and evaluate it in terms of factors like –
- Speed of transactions – Who wants to wait in this day and age. Your customer wants to pay quickly and keep moving. Hence you need to ensure that your processor can handle large transaction volumes without compromising on accuracy, speed and safety.
- Rate structure transparency – Ensure that there is transparency in the rates and fees of your credit card processor so that you do not get any nasty shocks later.
- Good uptime records – Look at the processor’s uptime history. See what measures they have taken to tackle service outages and then choose one.
- Customer support – Since you are dealing with complex systems, you will need a quick and reliable customer support team to back you up. Consider the sales demand of your business vis-a-vis the availability, speed and quality of service offered by the customer support, before you finalize a merchant.
Service providers like Northamericanbancard.com make it easy and convenient for you to handle credit card processing both online as well as in-store.
It is recommended that you do your homework, weigh the pros and cons and then finalize a service provider for credit card processing for your business.