subject: A Credit Card Processor To Save The Day [print this page] There are two basic interpretations of the phrase credit card processor. It can be taken to mean an actual machine, known as a credit card transactions processing via slang, that processes customers credit card payments, or it can mean a merchant account provider, a company that enables its clientele merchants of various industries to accept such card payments. Vision Payment Solutions is a credit card processor, in that it facilitates credit card payment processing. Simple enough, right? Lets look into credit card processors further, as well as some of the fundamental steps for processing payments.
When a credit card is used for payment, your credit card processor or merchant account provider will streamline the whole process for you:
First, you submit an authorization request with a point-of-sale (POS) terminal, PC software, a telephone, a fax, or online.
Second, your credit card transactions processing links to the card network to transmit the authorization request to the issuing bank.
Third, the bank verifies the account number and that the customer has the funds. The authorization also holds the funds on the customers credit limit.
Fourth, a merchant will transmit a deposit transaction.
And lastly, the money is deposited into your bank account at your chosen bank.
Credit cards offer protection for you, your customers, and the banks involved. In fact, protection is why credit cards are safer for everyone, so how does a credit card processor help?
Merchants: When you accept a credit card, you can be sure youll receive the funds.
Banks: The credit card transactions processing system protects issuing banks. When you submit a deposit, you are promising the issuing bank that you have delivered products and/or services promised to the cardholder at the sale. If you dont, the issuing bank has the right to charge back the transaction.
Consumers: Cardholders are protected from merchants who dont keep their words, and who dont deliver products or services as they promised. Customers arent held accountable if a merchant fails to deliver the goods.
