Credit Card Processing – Steps in the process

Posted by admin February - 2 - 2017

            

To a layperson, the process by which credit card transactions are carried out can be quite confusing.  There are quite a few parties involved and the process is complicated.  To understand how the process works, one should take a look at the companies involved and what they charge per transaction for card credit processing retail.  To get a better understanding, knowing all the parties and the services they provide is vital.  Ecommerce operators and regular merchants will get a better insight into services provided by participating firms and how much money exchanges hands.

Parties to card credit processing retail transactions:

Here’s a look at how a typical credit card transaction is handled by an ecommerce merchant.  The parties involved are:

  • The customer
  • The specific merchant
  • The payment gateway
  • The credit card processor for acquiring bank
  • The interchange for credit cards
  • The customer’s credit card issuing company
  • The merchant’s bank

There are in all 7 parties to each transaction and the process is so seamless that it takes less than 10 seconds on average for getting a transaction approved. Merchants may not be aware that there are over 400 categories for the major cards and that every sales transaction would be good when they qualify for the lowest one. Most business revenues are generated by credit card payments from customers and it doesn’t make sense to pay high rates.  Here are some strategies that could help the merchants to save some huge bucks during the transactions.

Strategies to build in order to lower the card credit processing retail costs

  • Interchange plus pricing
  • Choose in accordance to the Type of Business
  • Setting up the business properly
  • Reviewing the Card Usage and Average Transactions
  • Use of the latest and Current technologies
  • Reviewing of statements
  • Accepting all the cards and methods of transaction
  • Contacting Account Executives whenever necessary
  • Getting bids for card processing
  • Investing in Value additions

Do businesses receive statements on processed transactions?

Many merchants rely on High Risk Merchant Solutions  to get reports on the transactions they process over the period of a month – both for credit cards and every electronic transaction.  Monthly statements offer activity summaries to merchants and mailed automatically at the start of the month.


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