Credit card processing means the way the commercial accepts payments for services and goods. There are various parties included where it may look like a tap, dip, swipe or takes a few seconds. The payment processor functions as the mediator, transferring payments to merchant account from the credit card issuing bank. With the help of the payment gateway, the card information is safely transmitted through the payment processor.
This way, the transactions can be checked, later declined or approved. The payment processor may provide a third party or in-house gateway. The merchant account plays a part when the payment processor transfers the client’s funds after dealings are approved. If you are looking for the best credit processing for small businesses, you have to know the steps the credit card processor monitors to accomplish transactions.
- Issuing bank: It is a financial organization connected with the credit card of the customer.
- Payment processor: It serves as a shuttle, transporting details to merchant accounts from the credit card’s bank customer use. The accepted payments land in the merchant accounts. The payment processor checks and processes card security, and eases the payment transfer, transferring money to the merchant account from the supplying bank.
- Payment gateway: It is an application that accurately and securely connects data that is transferred through the processor from the bank of the customer to the merchant’s account. In simple terms, the payment gateway transfers the payment acceptance or decline.
- Point of purchase: The customer makes the shopping in-store using a card reader or shops online on the e-commerce site of the bank.
- Merchant account: The credit card payment processing company eases the money movement to the merchant’ account from issuing bank. It is a bank account, which helps the business to accept digital payments, debit cards and credit cards.
What are the factors to consider when selecting the best credit card processing company?
PCI-compliant: It is mandatory for the credit card processor to follow the PCI-DSS or Payment Card Industry Data Security Standard as per the PCI (payment card industry) Security Standards Organization.
EMV-compliant: Ensure that the company has the facility for processing chip cards.
Customer service: If you are facing any issue while processing a payment, customer service should be easily accessible. It means they should be available round the clock. You should not be paying any additional charges for assistance.
No hidden fees: Apart from the monthly subscription charges and price per transaction charges, the credit card processor has chances to charge for PCI compliance, support, chargebacks and statements. When you approach the best credit card processing for small businesses, they offer these service without any extra billing.
POS system: Being a small business, teaming up with a card processor offer access to POS software and hardware like programs, cash register card readers, and terminals. They eliminate the requirement to obtain your equipment. It is better when the payment processor provides wholesale priced or free equipment.
Pricing structure: Determine whether you will be paying monthly fees along with the price per transaction. Are you wondering what interchange is plus pricing? It is the interchange fee added to the percentage of each shopping. The flat-rate model means a fixed fee. It is best to search for transparent pricing as it is simple to understand, and you will completely know about the processing payment’s costs.
How much you have to pay for the credit card processing company?
The cost of utilizing a credit card processing company differs since each company have several pricing structures. Apart from the transaction charges and monthly subscription fees, the processor has chances to bill you for the statements, PCI compliance, card not present or chargebacks, equipment and other additional services. If you are a small business owner, there are chances to pay approximately $20 to $100 for monthly subscriptions. Only a few companies fix a monthly fee. The transaction charges are classified as follows:
Subscription: It is the monthly charge collected for service. It may include flat-rate pricing or interchange plus for transactions.
Flat rate: It is the fixed fee charged per transaction.
Interchange fee: The credit card processing companies charge this fee along with a percentage of every purchase.
MS Broker Solutions has been set up in California three decades back. The company focuses sharply on the latest progress in the credit card processing industry.