From around the world, over three billion people use and own credit cards. To each person, they have at least three credit cards that are listed using their names. With these numbers, you know just how important credit cards have become in the lives of almost every person for paying their bills and shopping for stuff. You will also notice many business establishments that are now accepting credit cards, even the small ones. For business owners such as yourself, it would be a great idea to consider adding credit card processing solutions to your payment methods for more customers.
Understanding what credit card processing is all about is the first thing that you should do before you make the step of adding this payment method for your business. Technically, credit card processing is a financial method that includes getting electronic access to the account of the customer. To this day, there are four major credit card names, wherein if you process any of them, you can ensure better business profits. Visa gets the number one rank for the major credit card names with over 261 million users globally. It is followed by MasterCard with 176 million users. At the third spot, you have American Express, where there are over 50 million users in the US alone.
The utilization of credit card processing solutions for your business can benefit it in more ways than one. Though most businesses want to get cash as payment, there are many benefits to accepting credit cards as payment. For starters, customers will find your company credible. As customers deal with your company, when you accept credit cards, they will think that you are a reliable and safe one. Trust is a crucial element when you are running a business. You can expect your customer or prospects to buy from your business regularly when they find you trustworthy.
Credit card processing works using two major steps. These two major steps include authorization and settlement. Authorization is a step that involves getting approval from the bank for a transaction that is pending. In this step, the customer or buyer must provide the necessary credit card details like their credit card security code, account number, and expiry date.
Processing of transactions, on the other hand, takes place during the settlement phase. In this process, any authorized bank transaction will mean transferring funds from the bank account of your customer to your company account. However, if the credit card is not authorized for the transaction, choosing another payment method or using another credit card may be necessary.
For credit cards to be processed, the use of various equipment is essential. Through advancements in technology, many equipment choices and avenues have paved the way for credit card processing to be possible for even startup companies. For the most applicable credit card processing equipment, take the time to get to know your needs and options before making a purchase.