We live in an era where continuous digitization is a basic requirement to cope with revolution. The fin-tech industry is constantly introducing new advancements every now and then. These would not only improve the customer experience but also enhance the accessibility of merchants and customers.
Small business owners are now compelled to allow their customers to pay with their credit cards through different gateways. These systems can be integrated or traditional. However, integrated system providers such as Pay.cc, play a major role in the growth of a small business.
An Open Banking Payment Gateway Through Reliable Service Providers
Through Pay.cc – an open banking payment gateway, customers can easily make credit card payments in the form of cards or mobile wallets. The integrated system allows automatic transfer between POS and terminal, making acceptance of payments much easier.
Because of these easy-access platforms, customers feel much more convenient as the need to carry hard cash has reduced to a significant percentage. In fact, in most of the developed countries, vendors are heavily fined by the government due to the unavailability of electronic payment terminals.
Moreover, the need to carry a physical credit or debit card is also reduced as people are more tech-savvy. Therefore, they find it easier to make contactless payments wherever they go. It is just as easy as tapping their device on the terminal and the payment is done in a flash.
What is Credit Card Payment Processing?
The possibilities of making credit card payments in this age are diverse. There are many techniques to make your payment without even needing to carry a physical card. If a person is carrying a debit or credit card, he can either swipe, insert, or tap the card against the terminal for a few seconds, and the details are shared with the network.
Moreover, customers are now provided with an alternative to make their payments. They can use QR codes, Apple Pay, Google Pay, and other contactless payment methods. With the help of their smartphones or smartwatches, the details will be transferred for verification.
The bank will then complete the verification process in a span of a few seconds. Once it shows the approval status in the terminal, the merchant receives the go-ahead. They can then hand over the purchased items to the customer.
The chargeable amount is then instantly billed to the customer. In the case of debit cards, the amount gets deducted from the user’s account right away. When the credit card is charged, the billed amount is posted in the statement of the month.
The Role of Credit Card Associations in Payment Processing
The credit card associations are linked to one another globally. Considerably, Visa and MasterCard are the most common associations among others that are accepted throughout the world regardless of how small the nature of business is. The monopoly revolves around MasterCard and Visa most of the time because of their global acceptance.
This worldwide linkage is based on a fee that is charged to the cardholder as a processing fee. It allows the cardholder to use the card anywhere around the globe. To cater these benefits to the cardholders, credit card associations charge an interchange fee, making the flow of money easier.
However, to lessen this processing fee, the providers can discontinue their American Express or Discover acceptance. As a result, it would allow the user to use their card either through the channels of MasterCard or Visa with, of course, a reduced amount of fee.
You Need an Acquiring Bank or a Merchant Service Provider
An acquiring bank or a merchant service provider is no less significant than a credit card association. This is because they play the role of a middleman who processes the payments from the start till the ending point.
They will deduct the money that is paid by the customer in any digital payment form. Next, they would transfer it to the appropriate business entity which is supposed to be paid through their integrated channels.
This service relocates the money from one place to another regardless of the payment form, place, or time. It does all of this with the help of vital devices and software that are made available to the vendors.
The acquiring bank or the service provider becomes an all-in-one solution. It allows the customers of your business to pay for their goods and services through credit cards. They may charge their respective card and the acquiring bank takes care of the rest.
The allocation of the money from end-to-end is done in a matter of a few seconds with the help of reliable service providers, such as Pay.cc. Therefore, it is a huge benefit for vendors because the integration of systems and acceptance of credit cards allow them to attract more customers.