A credit card processor is the one who manages the work related to handling all the transactions of credit cards. It involves the issuers of a credit card, merchants, and merchant account providers. This article includes all the information related to credit card processing and why Swype Fast is one of the top rated credit card processors in the market.
Some necessary things to know about credit card processing
The first participant is the cardholder. He or she is the person who swipes the card. The second participant is the merchant. The merchant is the person who sells his good and services to the cardholder. He sends the information on the card to the bank that has issued the card to the cardholder. The merchant bank receives this information.
This bank also sends the information to the issuing bank, and whatever data is received by the issuing bank, it forwards it to the merchant. Hence, the third and fourth participants are the issuing bank and the merchant bank. There is also an Association Member involved in this process like Visa, Discover, MasterCard, etc. These communicate with the issuing bank.
The process of credit card processing is composed of three stages. The stages are ‘Authorization,’ ‘Authentication,’ and ‘Settlement and Clearing.’ In the authorization stage, the merchants ask the issuing bank for payment approval.
In the next stage of Authentication, specific tools are used to prevent fraud. And lastly, in the Settlement and Clearing stage, the transaction is recorded in the credit card statement (which comes monthly) of the cardholder. It is also recorded in the merchant’s bank statement.
The settlement also coincides with the clearing. A settlement is a process in which the merchant is reimbursed. It is also the exchanging of funds between merchant’s bank and the issuer of the card. Swype Fast is one of the top rated credit card processors today because it has a seamless credit card processing system.
The different types of fees involved in credit card processing are transaction fees, flat fees, incidental fees. The transaction fee is a fee that constitutes the most significant operation cost of the merchant account.The flat fee is the fee charged for the services provided to the customer. Incidental fee is the fee that is not a part of the billing statement. This fee is used to cover budget shortfalls. Swype Fast offers a merchant cash discount program, which charges no fees for merchant processing. Hence, Swype Fast is one of the top rated credit card processors today.
Therefore, all the above steps are involved in credit card processing. If you want smooth credit card processing, try Swype Fast. Swype Fast is a one-stop destination for merchants and business owners because of its fantastic merchant cash discount program. It charges no fees during merchant processing. All these pointers make Swype Fast one of the top rated credit card processors in the business.
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