Credit Card Payment Processing is easy and convenient

Practically there are several reasons why people have shifted to credit and debit cards from cash payments. First, it is next to impossible to carry huge amounts of cash in your wallet, due to risk of robbery. Second, it is not always mandatory to have an ATM just when you think you need funds. Moreover, spending with cash puts a limit on your expenditure, which does not allow you to spend the way you want to. In addition, almost all the retails shops now accepts credit and debit cards payment, so using cards for payments is indeed a great way to spend on things you like.

But for the merchants who accepts credit card payments, should know the entire credit card payment processing. The processing starts when a consumer swipes the card in the card terminals, and enters the amount that the merchant deserves to pay. The device transmits the data on the consumer card to the appropriate financial institution and the money on the consumer accounts get shifted to the merchant’s account.

How the credit card payments process?

Credit card payment processing is not free to the merchant where the consumer is wiping his card. Each merchant have to pay a stipulated amount to the third party that links the merchant with the financial institutions. Depending on the third party, these charge can varies, but normally one or two percent of the amount was charged per transaction.

The amount takes time to enter the merchant’s account when a payment is done by credit cards. Because of the delay in the procedure, most of the times, merchants deny to take credit cards. Merchants have to wait at least 14 to 20 days to get the money in their account as the banks cannot pay the amounts to the merchants until the clearance. Due to the long wait for card payment processing, merchants often charge the customer with a convenience fee. However the convenience fees that the merchants charge from the consumers are quite low.

The debit card payment processing

Consumers those who pay with their debits card have to pay the merchant a minimum amount before the store accepts their payment via debit cards. The reason behind this is, often banks and financial institution often charge an amount from the merchants for the debit transactions. So, at most times, consumer using their debit cards pay a trifle sum to the merchants to process their payments via debit cards.

In most of the debit and credit card payments, the cardholder needs to enter a pin in the terminal in order to access the funds in the account. These pin numbers are known only to the card holders, and are used so that the card holder can protect the card from unauthorized use. Whenever you are swiping either your debit card or your credit card after a shopping in a retail store, never disclose your pin to the cashier and make sure you keep the pin safe.