Credit card processing includes activities that help in completing any mode of payments made through credit cards, whether online or offline. As per the recent reports, over 76% of the consumers use at least one or more credit card, and out of all the sales, only 10% of the sales is cash sales. It clarifies the significance of credit cards and their demand today.
Parties involved in a credit card processing:
I. Consumer- The cardholder or the purchaser
II. Merchant- Business or the person selling the product and services
III. Payment gateway- Technology through which the merchant connects with a payment processor
IV. Credit card processor- Payment processor who builds a bridge between merchant, credit card network, and the bank of the cardholder.
V. Card Network- A brand name of the customer’s credit card
VI. Issuing bank- Consumer’s bank or the cardholder’s bank
VII. Acquiring bank- Merchant bank used by the merchant to hold the fund of the business
Significance of a credit card processing company:
It is essential to choose a suitable credit card processor with the same concentration while choosing a bank. No matter if the person is a restaurant owner, runs a spa, or owns a retail store, the service providers who are underpinning their payments system must have to be rock solid. A credit card processor is much wider than just knowing the fees or the cards that can be accepted. It is more about providing a secured, reliable, and cost-efficient service.
Things to examine while determining a credit card processor company:
(i) Charges of the credit card processor while in its everyday operation: There are different fees and price structures when selecting a suitable credit card payment processing solution. Although there is no correct answer as the result depends on the category and size of the business, along with the cash inflows and outflows, investments and re-investments, expenses, payrolls, etc. Thus, a suitable credit card processing system is not necessary to be the same for a business that is suitable for some other businesses that deal with a similar type of customer.
(ii) Credit card security and coverage: A processor that provides an extensive layer of security to prevent fraud and transactions failure is ideal. PCI compliance and EMV compliance are the two fundamentals. Here credit card companies ensure security and protection against identity theft. Any merchant that processes, hoards, or transfers the credit card information must be PCI and EMV compliant. It also includes the latest technological advancement, biometrics, tokenization, and end-to-end encryption of data. Last, in case of any mishap credit card companies must provide insurance coverage adhering to the rules and guidelines.
(iii) Customer support services: 24*7 responsiveness, communication with real people, and accurate product knowledge while supporting the customers are a must. Many companies provide chat, emails, and bot support 24*7 but the real support from the individuals makes it the best service provider in the market.
(iv) Miscellaneous services: Today, credit card companies offer additional services like loans, advances, or credit lines. They also offer payroll management, employee management, inventory management, customer engagement programs, etc. When choosing an efficient processor, these services must be considered.
Conclusion:
Credit cards are no more a luxury but a necessity these days. The majority of the consumers prefer to use a credit card which shows how credit card processing plays a vital role in the expansion and success of any business. When the customers are convinced about the secured payment processing with exciting offers and discounts attracts customer attention and long-term connections. Better customer service brings loyal customers to the door hence, it is important to reassure customers that their needs are the priority.
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