More than 3 billion people around the world own and use credit cards, with each person having at least 3 cards to their name. Without a doubt, credit cards are vital elements in every individual’s daily life, whether shopping for clothes or paying the bills. If you want your business to cover more ground and attract more clients or customers, then you should consider credit card processing.
What is credit card processing?
Technically speaking, credit card processing is a financial transaction that involves electronic access to the client’s account. Currently, there are four big names in credit cards and processing any one of them can help boost your business. First is Visa, with 261 million users as of last year. At 176 million strong is MasterCard. At the third spot is American Express, which is used by more than 50 million clients in the US alone.
What are the benefits?
Cash payment is good, but accepting credit card payments also has a lot of benefits. For one, it makes your company credible in the eyes of clients. If you accept cards, customers will think that your company is safe and reliable to deal with. Trust is a big aspect in business, and if a client trusts you, chances are he’ll make a purchase from your store.
How credit it works
There are two steps involved in credit card processing: authorization and settlement. Authorization is obtaining the bank’s approval for the pending transaction. In this step, the buyer provides the pertinent card details such as the account number, expiry date, and the card security code to complete this phase.
Settlement, on the other hand, involves the processing of the transaction. In this process, the funds are transferred from the bank to your company’s account if the transaction is authorized. If not, the client will have to use another card or choose another payment method.
Equipment used for credit card processing Payment Processing
With the advancement of technology, more and more equipment and avenues have been developed to allow even the smallest of retailers to conduct credit card processing. Here are the different machine choices should you decide to jump on the credit card processing bandwagon:
· Dual Comm Terminal – This easy to use plug and play device only requires an internet or phone connection for efficient card processing. This is the cheapest of all the services, yet it’s one of the fastest.