With wide-ranging e-commerce businesses, more customers are getting comfortable with online purchases. The e-commerce businesses implement a merchant service card processing system to process payments. Most businesses are offering their customers as many payment options as possible so that they can make huge profits. They give their customers the ability to pay with their credit cards or debit cards. This will make it easy and flexible for customers to shop online or even in the stores. The merchant services industry is growing rapidly, and everyone is adapting to the new trends and practices. What is merchant services? Merchant services, also known as credit card processing is the handling of online payment transactions for merchants. This includes receiving authorization for the transaction, collecting sales information from the merchants and collecting the money from the bank that issued the credit card and finally sending the funds to the merchants.
Merchant services make it easy for businesses to increase their sales by accepting the major credit cards securely. The services process the transactions through a model; this means that the credit or debit card such as Visa, American Express or MasterCard have proceeded on a real-time basis. This enables merchants to accept payments through a wide range of channels such as e-commerce, POS or even telephone orders. The merchant services also process several currencies, and this enables them to expand merchant’s reach to the global markets.
Most merchant services are easy to implement and ensure that transactions are processed in real-time and securely by using 3-D secure credit card authentication like MasterCard SecureCode or Verified by Visa.
The merchant services have a payment authorization process that is designed to protect the merchant from fraudulent transactions or transactions not approved by card holders or transactions whose cardholders have exceeded their credit limit. When a payment is performed with a credit card, the merchant will receive approval from the bank that issued the card authorizing the transaction so that sales can be processed. If the transaction is not authorized, the card may be declined. If payment is approved, the actual fund transfer, also known as the settlement is deposited into the merchant’s account depending on the agreed dates on the contract.
For merchant services whose systems do not process payment in real time or 3-D secured allow merchants to swipe the credit cards at the point of sales. This may not be the best option for most merchants because the process is not in real-time. The merchants swipe the card or enter the card information and the amount due. The information is transmitted to the card processing company. The merchant services then capture the transactions and send the information the issuing bank who then authorizes the payment. If payment is not authorized the card will be declined.
The disadvantage of this process is that if the customer has already gone with the products purchased, it is very unlikely to recover such payment if the card is declined. Therefore, it is advisable to choose secure merchant services that can process payment in real-time.