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Credit Card Processing

Credit Card Processing
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There are many credit card processing companies today who make shopping from websites, smart phones and online and offline stores very easy. Efficient credit card processing services are offered when businesses accept payments from different types of credit cards. This increases sales to high levels because shoppers can purchase goods and services anytime wherever they are. This has made shopping very easy and convenient.

Transactions can be processed at the retail outlet, online even in remote areas where there is internet access and manually using terminals. The credit card processor will protect the customer's privacy and credit card number from fraud. This is done by using encrypt language to ensure that the card details are securely processed from customer to merchant to acquirer and issuer of the card and back to the merchant. The credit card processing company charges discount fees and transaction fees. The transaction fees are charged for each transaction whether it is successful or not.

The first step of credit card processing is authorization. When the cardholder requests purchase of goods or services from a merchant, the card number is keyed in or swiped. These details are sent to the acquirer by the merchant for authorization of the transaction. The acquirer then sends the request to the issuer of the credit card who verifies the card holder's account. If there are enough funds to pay for the purchases, the issuer sends the information to the acquirer who relays it to the merchant. The customer receives the goods or services.

If there are no funds enough to pay for the purchases or when the account details are not accessible, the information is relayed back to the merchant with coding of the feedback. The next credit card processing step is batching. The merchant keeps receiving authorizations from the acquirer. The authorized sales to different customers, for the day, are batched together and sent to the acquirer requesting payment. The third step of credit card processing is clearing. The acquirer then sends the payment request to the issuer of the credit card who deducts exchange fees and sends the payment to the acquirer who also deducts discount fees and sends the net amount to the merchant. The merchant receives the payment and this is the final step known as funding.

To choose the best credit card processing, you will need to compare different companies and see what they offer. Compare the rates they charge and read reviews from their customers who have done business with them in the past in order to know the reliable ones in the market. Some offer low-cost start up fees while others do not charge application fees and set-up fees. Some companies charge binding contract charges and termination fees when the customer moves to another credit card processor. There are some companies which don't deal with high risk clients while others do. It is important to check which credit cards and currencies are acceptable by the credit card processing company you choose.

Last modified onWednesday, 03 April 2013 05:45
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