If you are confused about credit card processing, how the whole process goes and how it works, don’t worry.

We are here to help you.

We did our best to simplify each and every step so that the process can be done with ease.

Today, a lot of businesses are using credit card processing.

Whether it’s just a payment in a local cafe shop, big market, or even some expensive home appliances, you will be able to make a payment by using your credit card.

But, this does not refer only to when you are the buyer!

When you want to run your business as well, you should know the basic steps on how credit card processing works.

This is actually a crucial thing in times of pandemics!

Due to all the restrictions but especially for being cautious and staying safe, we wanna avoid all the unnecessary touching.

This situation occurs when the customer needs to make a payment for its purchase. Instead of counting cash, transferring it from customer to customer, it’s way safer to use a credit card.

Not only is it better for our health but it’s more convenient, easier, and quicker to checkout.

Let’s see how we can do that and learn the basics of credit card processing!

What is Credit Card Processing?

Credit Card Processing is a process when the other party, usually the customer, is transferring money from his/her bank account to the vendors/yours, with the aim to successfully pay for purchased goods.

Of course, every business should be able to accept cash and this method is very important as well, but credit card payment is more efficient for both parties.

Who and what is involved in that process?

1. Consumer — known as the credit card holder, and at the same time in terms of sale the Customer that is making the purchase. ✓

2. Merchant — is the vendor having its own business and at the same time a provider of the services that consumer is getting. ✓

3. Credit card processor — a small compact machine or mechanism responsible for transferring the payment. It is also known as a payment processor that is responsible for the connection between the parties ie. the merchant, the credit card network, and the bank of the cardholder. ✓

Credit Card payments can be done in two ways:

Directly -is when you use your traditional consumer plastic card for the purchase.

Indirectly — is when a customer is using CC processing. This means that the payment will be done by using a digital wallet on customers’ iPhones or Android phones.

This is also known as a payment gateway. This term stands for connecting the merchant to a credit card processor.

A payment gateway merges with card-present directly or indirectly/ A payment gateway connects with your card directly or indirectly, takes details of the payment, and directs credit card data towards a payment processor or the merchant bank for authorization.

When the process is done, the merchant will receive a message whether the payment was approved or somehow declined.

It’s very important for every business to have this method of paying.

If not, they are risking budget decline plus the customers will not be satisfied with the full services that they can have.

To make sure you avoid this unpleasant situation, let’s learn about credit card processing more following our next blog post!