Merchant Accounts Credit Card Processing 101

Merchant accounts credit card processing is a vital component of any profitable or successful small business – or any size of business, for that matter – in today’s modern economy. If you want to start up a new business of your own, you need to know how important it is that you accept credit, debit, gift, and other electronic forms of payment from your customers and clients. Accepting such payments during transactions – made possible only through merchant accounts credit card processing – offers a world of advantages for both you and your patrons (both prospective and current).

Merchant accounts credit card processing benefits you, the merchant, because cards can never bounce like checks do; they are simply either approved or declined. Further, your customers will be far more likely to spend more money in your store, should you choose to accept that form of payment. Not only will your profits increase from impulse buying, your average ticket will increase because customers have the means to purchase such goods or services without actually having the cold hard cash to back it up at that moment. This can open up a world of opportunity for your business – only possible through merchant accounts credit card processing.

Additionally, your customers benefit from the increased possibilities they have for paying for your products and services. They enjoy having the opportunity to make choices, and when you accept their electronic payments via merchant accounts credit card processing, you are further improving the professionalism of your image. You’re telling the world and the modern consumer base that you’re with the times, and capable of surviving, thriving, changing, and adapting in a rough and tumble economy.

The basic sub-processes involved in merchant accounts credit card processing are simple in and of themselves, but can be confusing to newcomers trying to figure out how these different sub-processes interacting with one another results in acceptance, approval, and transfer of funds in a safe, secure, efficient, and reliable manner.

Essentially, in merchant accounts credit card processing, in a typical brick-and-mortar business operation, a consumer presents her card. The merchant or associate then swipes or manually keys in the card information, which in turn is transmitted to the cardholder’s bank. The bank then determines whether the cardholder has the sufficient funds necessary to cover the transaction and, should she, it transmits a special approval code back to the merchant, who then finalizes the transaction and sends the happy customer on her way!

These are just some of the basics of merchant accounts credit card processing, but stick with us to learn more, and stay tuned for future installments of our merchant services blog!