What's Involved With Credit Card Processing?


30 Mar


Credit card processing has become a very big business. There are many different companies who offer this service. Every day, more businesses are looking for a way to improve their customer relations and offer an easier, smoother shopping experience. If you are one of those people, then you may be interested in finding a company that offers this service. Read more about Microsoft Dynamics 365 Business Central Credit Card Processing on this page.


What are the parties involved in credit card processing? There are several parties involved in this process. Merchant: The merchant is in direct contact with every customer who uses their service and swipes their plastic at the point of sale. Merchant's fees are often a percentage of each transaction, which makes their service one of the most competitive. If you choose a company with a low minimum payment or free transactions, they may be more expensive than businesses who charge more. If you are already a merchant, then ask if they accept the credit cards offered by your current company.


Service provider: These are the people who actually perform the credit card processing for your business. They collect fees from your merchant account and take care of the financial end of accepting credit cards. You will likely need to use a third party company if you have a high volume of sales or if you will not be paying any fees. Make sure you understand the Microsoft Dynamics 365 Business Central Credit Card Processing service provider's fees and requirements before signing anything.


Fattmerchant: This is the middle person who makes a transaction possible between your customers and your merchant account. They collect fees, and are in direct contact with your customers. If you are going through a third party company, make sure you know their fees and how they will be collected. Know the process of allocating transaction fees with each participating company. You may also want to ask your fattmerchant whether they will handle checks and paper checks.


Seller: A seller is just that-the person who actually sells the goods on the web. There are often no fees involved in the credit card processing fee arrangement with these merchants, but you will likely have to pay the regular sales and installation fees. Some vendors have been known to charge an up front setup fee for accounts, though this should be avoided as these are generally the most expensive sellers in the market and they are usually setting their own pricing model.


Credit card processing isn't all about setting up merchant accounts and collecting monthly fees. There is also the added benefit of lowering costs and increasing profit margins. Make sure you understand how your pricing model will effect your bottom line before signing on the dotted line. You can start the conversation by explaining how long it will take to process a typical credit card payment, the percentage of charge backs you will have to pay, and what type of rates you will be offered for these fees. Get more info about this topic at: https://en.wikipedia.org/wiki/Credit_card.

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