A customer obtains a credit card from an issuing bank to pay for goods or services. The customer uses their card at a merchant to purchases an item at your in-person store. The transaction gets stored until the merchant sends a batch of all transactions to their payment processor. The payment processor passes the transaction details to the card associations that confirms and communicates the appropriate debits with the issuing banks in their network. Those banks then charge the customer’s account for the amount of the transaction. The cardholders issuing bank then transfers the appropriate amount to the merchant’s bank minus the fees associated with the task also know as the interchange fees. The Merchant’s bank then deposits the funds into the merchant account.

If you are doing sales online, then the process is very similar, but you will need to set up a payment gateway. This gateway is what connects your online store to the processing network. So it would work like this. The customer purchases something with their card on your website. Their information goes through the payment gateways which encrypts the data to ensure nothing is stolen. The data is then sent to the payment processor. They respond with a yes or no depending on if the customer has enough credit to pay for the item. This then starts the same process as above until the money is deposited in the merchants account. This is an extremely quick process.

The key to both of these is that different banks and cards charge different fees. So choosing who you partner with is a major key in making sure you are not paying too much to accept credit cards. This is why Paymint Pro has partnered with over 40 different banks to help ensure you are getting the best rate you can.

If you are looking to start accepting credit cards or would like to see if you can get a better processing rate, please fill out the contact form Here.

Leave a Comment