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the payment processing companies in st.louis look
pretty simple on the surface however there are many parties involved in this seemingly basic process let's start with the participants involved the cardholder is the person who owns the credit card used to make a purchase the merchant is business that sells the products or services to the cardholder the acquirer is the merchant bank that processes credit card transactions on behalf of the merchant then there's the credit card brand or network Visa and MasterCard are examples of networks used to process a credit card transaction finally the issuing bank is the financial institution that issued the credit card now let's see how these participants make a credit card transaction using this example Bob a brick-and-mortar merchant sells an apple to a cardholder Clara for $1 Clara inserts her card into a chip reader and the point-of-sale terminal dials out to obtain an authorization code here's what happens next first the POS terminal sends the information to the acquirer the acquirer sends the details to the issuing bank via credit card network let's say visa and request a payment authorization for a one dollar transaction from the issuing bank the issuing bank checks if Clara has enough money checks if the expiry date is valid and verifies many other things including matching Bob's business address and card holders billing address that's why you always need to call your bank if you travel abroad and would like to use your credit card in a different country once the issuing bank confirms that everything is correct it issues an approved authorization code and sends it back the same way it received an authorization request through visa and the acquirer Bob sees the approved message on his POS terminal the issuing Bank places a hold for one dollar on Clara's credit card account for Bob to receive the money for the sale he first needs to close the batch as card holders come in and buy apples authorizations are stored in the POS terminal in a batch and to become a deposit in Bob's account he needs to settle the batch when Bob settles the batch each authorization travels back to the respective issuing bank for a final clearing the authorizations travel via the same channels as before first they go to the acquirer and then via credit cards to the issuers each issuing Bank removes the Holt and withdraws actual funds from the cardholders account instead next the acquirer funds the merchants bank account now what about the processing fees the credit card networks billed the acquirer interchange fees for all of Bob sales once the batch is settled the acquirer then bills Bob either on the same day sales minus fees if bob is on daily billing where the acquirer bills Bob at the end of the month for all the sales processes in that month the cardholder gets billed by its issuing bank and that's how credit card transactions work. AllFrom your searchCredit cardsSalesRelated ST.LOUIS PAYMENT PROCESSING COMPANIES |
payments is the thing that makes the
world go around and actually makes your business operate so it's really important you might have heard of payment solutions like Square or PayPal those are great don't get me wrong but they only do a part of the job so we're gonna go through the different things that you should be mindful of when searching for your next payment processing solution alright so the first thing you want to be mindful of when you're searching for your next payment processing solution is mobility because most people and small business owners are on the go you want to be able to take a payment from a customer wherever that customer may be and that solution is the ability to take a phone use the camera not to take a picture but to scan that credit card and to receive the information on the card what that allows is the confidence that when you're out on the job and you've completed the work and the customer is standing there with credit card in hand you don't have to worry about swipers thing nor though it's not connecting no you take your phone scan the credit card you receive the payment and your what's the next thing to be mindful how much you're getting charged so different companies out there offer different rates and if you're not paying attention to the rate of the company that you're deciding to use it might be in trouble because it can get really expensive you want to look for a solution that offers a rate of 3 percent or less in charges no more than 30 cents for every transaction now there's something else right there's that thing called card-not-present transactions that's when you're on the phone with the customer they're giving you the credit card information maybe that customer is going online putting in a credit card to secure their appointment in those two scenarios the cards not actually physically present in most payment processing solutions will charge more for that however there are solutions like thrive that will never never charge you extra for a card not present transactions the third thing that you want to be mindful of when finding your next payment processing solution is you want to find a solution that is connected to all the other things that you do to run your business maybe it's marketing maybe it's sending emails maybe it's more incident to your customers by having your payment processing solution integrated and connected to everything else you do it makes you and your business that much more power so what you're doing by having your payment processing solution connected to everything else you do is you are getting more insight into your customers how much they spend allowing you to take action to make more money and who doesn't like making more check us out at PAY-TRIOT watch more videos me giving you tips and tricks on how to better your business see you soon you |