In this day and age, not a second goes by where a MasterCard or Visa credit card is not being swiped or being used to buy stuff over the Internet. But have you ever stopped to think how it all works? In this article, we are going to show you how credit card processing works.
In any credit card transaction, there are six parties involved: the customer, the merchant, the requesting bank, the receiving bank, the credit card network, and processing company.
While we all know that it’s the customers that pay for the charges, it’s the merchant that requests the payment. He swipes the credit card into a POS machine by provided by the credit card processing company. The POS machine records the machine and then goes through the credit card network of Visa, MasterCard and others. The information is then relayed to the customer’s bank with request for payment. The bank can either approve the transaction or decline it.
For online transactions, an online payment gateway is used to capture credit card information.
With a credit card, the owner is actually the bank. After sometime, the requesting bank then pays the merchant’s bank. If it seems like credit card processing is complex, it is. Yet very few people are aware of how complicated the process actually is.
If you plan on opening a store, whether it’s online or offline, you need to have the tools to accept payments and process them. The first step in the right direction would be to apply for a merchant account with your bank. Then you find a third-party processing company. You do not need to do anything with Visa and MasterCard. Your bank will take care of that for you. MasterCard and Vida over the years has, over the years, taken a hands-off approach to processing transactions and so it’s really not surprising to find third-party companies offering payment gateways for websites and POS systems for offline stores. It’s your job to find the best of these payment processing companies.
Security Of The Technology
When it comes to choosing a company to work with, one of the most important factors you need to consider is the security of the technology. In this day and age, credit card information security is absolutely critical. This is especially true in the case of online payment gateways. Another equally important you need to consider is the price. We’re not just talking about monthly payments here. We are also talking about charges per transactions and fees.
Always do the math and compare which processing company will give you a fair price. Where can you find a payment processor? It’s easy entry enough to find them. You just need to do a search on Google.
No matter what you do, always make sure to get information and do an apples-to-apples comparison of different companies based on the specifics of their technology and their price. You might also want to check out customer reviews and see which company enjoys positive ratings. To know more contact us or visit the website at https://highrisk.solutions/.