What is involved in the best credit card processing for small businesses? As a credit card processing company, the purchase and payment may seem a small work done in seconds. But it is not as simple as you think. Many small parties are involved in every single purchase.
If you plan to partner to team with the best credit card processing company, you have to know the procedures involved in each transaction.
- At first, the buyer. The cardholder purchasing with the credit card is the first party. His finance details and purchase details will proceed.
- Then the merchant or the business owner. They undergo various financial clarification and institutions to accept the payment with credit cards.
- The acquiring bank that the business is associated with to sell and buy goods. All the necessary details from credit card sales are provided to the business.
- This process needs to be accepted or issued with the issuing bank. They will take the amount from the credit card holders and deposit the payment to the business account.
- Most transactions are made with the known card associations: visa, master card, discover, and American express. Every process of credit card transactions and guidelines is monitored and checked by them.
- And finally, the payment processors come to work to handle all the transactions on their behalf. These companies are usually independent sales organizations.
Three main steps, including authorization, settlement, and funding, are involved in every credit card transaction. Authorizing the payment can be done in seconds but not the complete process of funding and settlement. It starts with the buyer swipes or scans the card for payment. This is the authorizing request for a transaction from acquiring bank. This is transferred and submitted to the card association and then to the bank of the cardholder.
Making sure the process and transaction are trustworthy with the bank, then the transaction is notified to be approved. The next step is the settlement of payment. This authorization is sent to the bank or payment processor that charges an amount. Then the funds are transferred to the issuing bank from which the amount is deposited on the business account. This process of funding and settlement is made faster with the best credit card processing for small business.
Minimum use of technology is involved in processing all credit card payments. The fees are also charged along with the credit card transactions hand-in-hand. A small business has to choose a company that works as per the credit card processing industry regulations.
