Nowadays, most of the small online businesses have their own websites for marketing their products and services. They even have shopping cart systems, which help in processing payments easily and comfortably. Thus, the payment system is considered as the most important part in the entire business process. It is here where the importance of online credit card processing comes in to play. Now, let’s take a look at the various terms that you need to be familiar with in online credit-card processing.
Before opting for or setting up any credit card processing service, the merchants should be aware about the processes involved and moreover, they need to have an idea about the its importance. Then, you will be able to use this service in a better and useful manner. Some of the terms that you need to be familiar with in online-credit card processing are given below.
The processors that will authenticate the personal and account information of the customers are called as Payment Gateways. In addition, they form the channels for the money that is transferred from credit card accounts of the customers to the accounts of the business owners or merchants.
Acquirer refers to the bank that settles and processes the transactions of the business owner with the help of the card issuer. They are also called as bidders who generally sanction the purchase using a debit or credit card.
Issuer is referred to the bank or service that is responsible for the issuing of credit cards to its respective cardholders or customers.
Some of the commonly used card-processing networks are MasterCard, Visa, Discover and American Express. These payment methods generally authorize credit card transactions and generally act as a link between the acquirer and issuer.
Automated Clearing House
It is generally abbreviated as ACH and it is referred to as the electronic payment from one account to another account. The transactions usually begin when a business or a company debits money from an account with the submission of an Automated Clearing House or ACH file.
Batch refers to the collection or set of transactions happening in a day whereas the settling or closing of the full batch of transactions at a time is called as processing.
These are some of the terms that you need to be familiar with while choosing an online credit card processing service.