Nowadays, most of the shops and major business establishments provide their customers with both debit and credit card processing facilities to make purchases. There are a few important aspects that make the whole process happening. Read along to know more about the subject.
Credit card processing
This term is associated with the electronic procedure that undertakes business transaction of credit cards. Once the transaction is authorized, the process starts fund transfer from the card processor’s bank. The funds are then transferred into the individual’s account and later directly into the account of the business merchant.
Merchant account is the business arrangement or agreement that happens between the card processor and the merchant. Usually, merchant accounts enable the merchants to receive payment thorough the credit cards of its customers.
Credit card processor
The credit card processor undertakes the verification process for the Electronic Fund Transfers EFT inside the ACH system. This is done on behalf of the clients.
Card Not Present (CNP)
Card Not Present, also known as CNP, is the technical word that is used for referring to a business transaction wherein the payment card and the cardholder are not physically available during the time of payment. On the other hand, you can see that the Card Present transaction is an opposite process and is referred to as face-to-face transaction. You can see that the Card Not Present transaction occurs via orders made through telephones, through mail orders and through online.
Payment Gateway is the software that is found on the server of a third party provider. The software mainly deals with all the transactions that happen between the merchant and the processor for the successful completion of the transaction. For instance, Transaction Express is the Payment Gateway that Trans First provides for their customers.
ACH or Automated Clearing House
ACH or Automated Clearing House is the term given for the mode of electronic payment that happens between different bank accounts.
Basis Point is the name given for the percentage charged to a person during the time of a credit card transaction. Basis Point is mainly used in terms of rates, especially surcharge rates.
Discount Fee is the name given for the fee charged by merchants to their clients, which enables them to utilize their credit card services.
Off-shore Merchant Account
This is an internet trading account for e-merchants operating from different countries. The Off-shore Merchant Account provides the merchant with many economical advantages.
Therefore, you can see that these are all important factors that are associated with credit card processing services.