How Merchant Credit Card Processing Works

Credit card processing fees vary for every vendor and some pricing structures will work for you while others may work against you.

How merchant credit card processing works. First let s look at the authorization process. They swipe or input customers credit or debit card information into this terminal which sends the data to be verified. Merchant processing is simply the ability for a business to accept credit and debit card payments in a secure way. Credit card processing works in three distinct processes.

Credit card processing fees or merchant discount rate may be charged in a few ways. E checks and ach transactions also fall under merchant processing too. Despite taking just seconds to complete credit card processing is an incredibly complex process that involves multiple steps to complete. The common thread between these categories is security.

Merchants buy or lease a processing terminal that either hooks up to a telephone line or to an internet connection. Merchant the merchant uses their credit card machine software or gateway to transmit the cardholder s information and the details of the transaction to their acquiring bank or the bank s processor. What does credit card processing look like in motion. This is how it works.

Merchant services is a system that enables businesses to accept credit and debit card payments from customers. A cardholder begins a credit card transaction by presenting his or her card to a merchant as payment for goods or services.