More than 3 billion people around the world own and use credit cards, and each person has at least 3 cards in their name. Undoubtedly, credit cards are vital elements in the daily life of each individual, whether it is to buy clothes or pay bills. If you want your business to cover more ground and attract more 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 a customer’s account. There are four big names in credit cards today and processing any of them can help boost your business. First up is Visa, with 261 million users as of last year. At 176 million strong is MasterCard. In third place is American Express, which is used by more than 50 million customers in the US alone.
What are the benefits?
Cash payment is good, but accepting credit card payments also has many benefits. On the one hand, it makes your company credible in the eyes of customers. If you accept cards, customers will think your business is safe and trustworthy to deal with. Trust is an important aspect in business, and if a customer trusts you, they are likely to make a purchase from your store.
how the credit works
There are two steps involved in credit card processing: authorization and settlement. Authorization is getting the bank’s approval for the pending transaction. In this step, the buyer provides the relevant card details such as account number, expiration date, and card security code to complete this phase.
Settlement, on the other hand, involves the processing of the transaction. In this process, funds are transferred from the bank to your business account if the transaction is authorized. Otherwise, the customer will have to use another card or choose another payment method.
Equipment used for credit card processing.
With the advancement of technology, more and more equipment and pathways have been developed to allow even the smallest retailers to perform credit card processing. Here are the different machine options if you decide to jump on the credit card processing bandwagon:
Dual Communication Terminal – This easy-to-use plug and play device requires only an Internet or phone connection for efficient card processing. This is the cheapest of all services, but it is one of the fastest.
· Wireless Terminal: You can take this terminal anywhere for card processing because there are no wires or wire connections. Not only do you get a receipt right away, but wireless solutions offer easy and efficient transactions at an affordable price.
· Dial-up Terminal – Also known as Analog Terminal, it is the most widely used device in the world. This plug and play terminal can easily process a transaction with a main phone line.
Mobile Phone Terminal: This device allows you to process card transactions with smartphones such as iPhones, Samsung Android phones, or Blackberries. All you need to do is download the program from the iTunes or Android Market Place. Card setup and processing is easy and the price is reasonable.
· Internet Processing Terminal: Also called a Gateway Terminal, this method allows you to process card payments simply by browsing the web through your web browser. You can even email receipts to your customers as needed.
Point of Sale Terminal – For this method, you need to install a certain program on your Point of Sale Terminal. With your own Gateway Transaction Manager, you don’t have to worry about modifications or changes to your system.
For any business, credit card processing is vital. It gives you an advantage over “cash only” merchants. With the many options available for this type of payment transaction, you’re sure to choose one that fits the size of your business, your needs, and most importantly, your budget.