Everything You Need to Know About Credit Card Processing

When it comes to credit card processing, there are a lot of things that go into it. Here is everything you need to know about credit card processing so that you can make the best decision for your business.

First, you need to understand the different types of processors. There are three main types: banks, merchant service providers, and independent sales organizations.

Banks are the most traditional type of processor. They provide merchant accounts and process transactions for their customers. They typically have the lowest rates and fees, but they also have the most restrictions.

Merchant service providers are companies that provide credit card processing services to businesses. They typically have higher rates and fees than banks, but they also have more flexibility and options.

Independent sales organizations are companies that resell credit card processing services to businesses. They typically have the highest rates and fees, but they also have the most flexibility and options.

Next, you need to understand the different types of transactions. There are two main types: card-present and card-not-present.

Card-present transactions are those that occur when the customer is present and using their card. These types of transactions have the lowest risk of fraud and chargebacks.

Card-not-present transactions are those that occur when the customer is not present. These types of transactions have a higher risk of fraud and chargebacks.

Finally, you need to understand the different types of cards. There are four main types: credit, debit, prepaid, and gift.

Credit cards are the most common type of card. They allow customers to borrow money against their credit limit and pay it back over time.

Debit cards are similar to credit cards, but they are linked to a customer’s bank account. This means that customers can only spend what they have in their account.

Prepaid cards are like debit cards, but they are not linked to a bank account. Customers load money onto the card and then use it to make purchases.

Gift cards are like prepaid cards, but they can only be used at specific stores.

Now that you understand the different types of credit card processing, you can decide which type is right for your business. If you are a small business, you may want to start with a merchant service provider. If you are a larger business, you may want to consider a bank.