A Credit Card Processor to Save The Day

There are two basic interpretations of the phrase “credit card processor.” It can be taken to mean an actual machine, known as a card processor 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 card processor, in that it facilitates credit card payment processing. Simple enough, right? Let’s look into card processors further, as well as some of the fundamental steps for processing payments.

When a credit card is used for payment, your card processor – or merchant account provider – will streamline the whole process for you:

What do you need to do with a credit card processor?

First, you submit an authorization request with a point-of-sale (POS) terminal, PC software, a telephone, a fax, or online.

Second, your card processor 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 customer’s 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 you’ll receive the funds.

Banks: The credit card processor 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 don’t, the issuing bank has the right to charge back the transaction.

Consumers: Cardholders are protected from merchants who don’t keep their words, and who don’t deliver products or services as they promised. Customers aren’t held accountable if a merchant fails to deliver the goods.