A Credit Card Merchant Account is a type of bank account specifically customized to enable e-commerce and POS business to accept credit card payments. But the problem is that not every bank provides these types of accounts. Acquiring banks need to work with business owners as well as with the merchant account providers to establish such accounts. Depending on the location and nature of your business, some acquiring banks offer different merchant credit card processing solutions. In this blog, we will read more about such Merchants accounts:
Parties Involved in providing Credit Card Processing
The simpler it seems, the complex it actually is. There is a whole lot of parties that jump into action when your customer swipes their card.
- Cardholder: Your customer who owns the credit card and is using it for purchase.
- Merchant: You, the business owner who is accepting the payment
- Card Association like Mastercard, VISA who are not banks, but rather governing bodies that set interchange rates and arbitrate between acquiring and issuing banks to maintain and improve their networks.
- Acquiring Bank: Also known as the merchant’s bank. They hold the merchant’s funds and acquire the money from a sale.
- Issuing Bank: The cardholder’s bank. As a part of the association, they issue cards to consumers and allows them to make a payment.
- Payment Processor: They assist with technology needs and handles the processing and batching of purchases made with credit, debit, or gift card payments.
How An Credit Card Merchant Account Works?
Accepting credit card payments has now become a necessity for an online business. Below is the whole process that would help you to get an insight into how it works:
- Your customers visit your website and decide to buy one of your product
- Your customer enters his credit card information into your secure website to proceed with their purchase
- Once the order is submitted, your website will send a transaction request from your server to your acquiring bank’s payment gateway.
- Then, the payment gateway enables you to accept and process credit card transactions online
- The payment gateway will forward your customer’s transaction request to his credit card issuing bank.
In case the request is approved, the issuing bank notifies both you and your customer and transfers the approved funds to your credit card merchant account.
However, if the request is declined, the issuing bank will notify you and your customer, provides your customer with an explanation, and you will not receive any funds to your credit card merchant account.
Why Choose ClickZep?
We at ClickZep provides a wide range of credit card payment services to online business owners. With our services, the merchants are allowed to accept online payments using a variety of credit card brands that include but not limited to Visa, MasterCard, etc. We focus on real-time processing that further offers security and online fraud prevention to both the merchants and card-holders.
Not only this, credit card merchant accounts services from ClickZep are affordable, reliable, and allow you to watch your business grow and thrive.
Still have questions to ask? Not to worry! Call us right away. Our team of experts is willing to help you regardless of your business type, location, or risk factor.
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