As a merchant, it is important that you know all that you can about credit card payment companies. Whether you are a new business owner or a seasoned veteran owner, you should know that credit card payments are not as simple as swiping a card. As a matter of fact, that one transaction is going to travel through about 5 stages before you ever get paid for that transaction. The information is gathered by the terminal that is supplied by the credit card payment companies, that information is transmitted to the processing company which in turn relays the information to the card issuer who then approves the transaction. Approving a transaction happens relatively quick but that is not the payment. The information is stored and then sent in batches to the processing company who then bills the issuer and then the funds are released. You can see the important role that the payment companies play in this process.
Payment companies provide a valuable service to their clients. These 5 facts are little known facts about these companies that can help you to understand the value of their services:
- The equipment is a very important part of the service. The terminals provide a level of security that you cannot get from manually inputting a card number. The magnetic strip on the card that the consumer swipes offers an added layer of security that you do not get when you manually enter information.
- Consolidation is best. It is best to choose one payment company that can process many different types of payments instead of having one vendor for check processing and a different vendor for credit card processing. It saves on fees by using one company.
- The cost is often misunderstood. There is a lot of work that goes into getting you paid. The fees are quite affordable when you consider the amount of effort including security processes that are used by these companies.
- Payment companies are an important part of the financial industry. A lot of people think of these companies as just middle men but they are proactive movers and shakers in the financial industry that enact many of the changes that you see.
- With the right payment company in your corner you will have the support that you need to get your transactions processed quickly and accurately.
American Merchant is one of the leading payment companies. Get a free quote for services today!