Credit Card Processing:

What is it?

Credit Card Processing is a service that enables businesses to accept payments from customers via credit or debit cards. This process involves the transfer of funds from the customer’s account to the business’s bank account, typically facilitated by a payment processor, acquiring bank, or merchant service provider.

Here’s how it works: When a customer makes a purchase using a credit or debit card, the transaction goes through several steps to ensure the payment is valid and secure. The card information is transmitted from the merchant’s point-of-sale (POS) system to the payment processor, which communicates with the cardholder’s bank (the issuing bank) to authorize the transaction. If approved, the payment is processed, and funds are transferred to the merchant’s account, usually within one to three business days.

Credit card processing is essential for businesses that want to offer their customers a convenient and widely accepted payment method. With the growth of e-commerce and mobile payments, having a reliable credit card processing service is crucial for both in-person and online sales.

How do I get it?

To set up Credit Card Processing for your business, you need to follow several steps. Here are the key ones:

  • Choose a Payment Processor: The first step is selecting a payment processor or merchant service provider. These companies handle the transaction processing and offer various tools and services to facilitate payments. Factors to consider include fees, integration options, customer support, and additional services like fraud protection.

  • Set Up a Merchant Account: A merchant account is a special type of bank account that allows your business to accept credit card payments. The payment processor usually helps set this up, and it’s where the funds from credit card sales are deposited.

  • Integrate with Your POS System: If you have a physical store, you’ll need to integrate the credit card processing service with your POS system. For online businesses, integration with your e-commerce platform or payment gateway is essential.

  • Understand the Fees: Credit card processing comes with various fees, including transaction fees, monthly fees, chargeback fees, and more. These fees can vary based on the payment processor, the types of cards you accept, and the volume of transactions. Be sure to review and understand all the fees involved.

  • Ensure PCI Compliance: To protect your business and customers, you must comply with the Payment Card Industry Data Security Standard (PCI DSS). This involves following best practices for securing cardholder data and preventing fraud.

  • Monitor Transactions: Once your system is set up, it’s essential to monitor transactions regularly. This helps you spot any irregularities, manage chargebacks, and ensure that funds are being deposited correctly.

Rates and Fees:

Credit card processing fees can vary depending on the payment processor and the types of transactions you handle. Typical fees include:

  • Transaction Fees: Usually a percentage of the transaction amount (e.g., 1.5% to 3.5%) plus a small fixed fee per transaction (e.g., $0.10 to $0.30).
  • Monthly Fees: Some processors charge a monthly fee for account maintenance, typically ranging from $10 to $50.
  • Chargeback Fees: If a customer disputes a charge, you may be charged a fee, usually between $15 and $25.
  • PCI Compliance Fees: Some processors charge an annual fee for ensuring your business is PCI compliant.

Questions? You’re Covered

Most processors allow you to accept all major credit and debit cards, including Visa, MasterCard, American Express, and Discover.

Funds are typically deposited into your merchant account within one to three business days, depending on the processor.

Simply fill out our application, and one of our Credit Card Processing specialists will reach out within a few hours. They will provide the full list of documents needed, which will vary case by case.