Thursday, April 23, 2015

Two Stages of Credit Card Processing


When you run a business, it is important for you to be aware of how the (credit card processing) works. The (credit card processing) for your business is done in two stages. The first stage is the Authorization Stage where you get approval for a business transaction that is stored along with an order. The second stage is the Settlement Stage where the sale is processed while it transfers the funds from an issuing bank to a merchant's account. The flow chart looks like this: Buyer - Merchant Store - Data Payment Processor - Issuing Bank or Credt Card Association and reverse in the same order. (Credit card processing) rates may vary by a processor program or by company. [Comparing Rates through (Credit Card Processor Reviews)] It is a smart idea to always compare the rates among competitive financial institutions. In any case, the interests of the customer have to be given priority as far as the processing rates are concerned. There are few issues that you may have to look for while exploring the (credit card processor reviews). These issues are: 1. Looking for processors who do not charge early termination or cancellation fees. 2. The payment processor has to be compatible with your shopping cart online. 3. The option of interchange-plus pricing should be available to you. With this facility, you can track excatly what the Visa or MasterCard charges are for the interchange fee and what you are likely to pay the processor. 4. What is the customer support available if there is help required in a case such as a terminal malfunction. [The Authorization Process for (Merchant Accounts) Orders] When a buyer clicks the 'checkout' button while doing shopping online with (merchant accounts), the process is sent to secure servers to get completed. This authorization request is sent to the payment processor. It is then forwarded to the issuing bank or the credit card association. The details include the 1. Credit Card Number. 2. Expiration Date of the Credit Card. 3. Billing Address 4. CVV or the secret code number. 5. The amount of the order. This information is validated by the credit card company or the issuing bank against the available credit of the buyer. When approved, the order amount is reserved from the sum of available credit of the cardholder. The confirmation is sent to the source within a mater of seconds. [The Settlement Process of an Order] The process of settlement for various merchant services and other compatible (merchant accounts) involves the signing in to their account by the merchants. This goes to the Order Manager. The order is reviewed against any signs of fraud. Before completing the sale, the merchant clicks the `sale' button which is available in the transaction panel of the order. This initiates the process of settlement. When the request is accepted, the cardholder's account is debited by the order amount. [Main Objective of the (Merchant Accounts)] As a business owner, your main objective is to make money and not to spend more on transaction fees or the maintenance of your website. When you want to compare by going through (credit card processor reviews), the important thing to consider for a good deal is the (credit card processing) rate before you open (merchant accounts). Once you have a good credit history behind your business, it is easy to get approval.

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