For example, your issuing bank could be RBC.
Issuing banks act as middlemen between you and the credit card networks by issuing contracts with cardholders for the terms of the repayment of transactions. The issuing bank is the financial institution that provides you with your credit card and accompanying line of credit. Let’s look at each of these: What is an issuing bank? There are a number of different parties involved in processing credit card payments. There are a few additional parties represented on the credit card and in what’s happening during the transaction itself. The point-of-sale system: the interface used by the merchant to accept the credit card payment (e.g., a Square Reader or Stand).The merchant: the business accepting your credit card as payment for goods or services (Cup of Joe Coffee).The credit card: that rectangular piece of plastic with your payment credentials on it (e.g., Signature RBC Rewards card).The cardholder: this is the person with the credit card (aka you).Here are the official names of the players involved in the transaction: Let’s say you go into a place called Cup of Joe Coffee and pay for a latte. The parties involved in credit card processing Having a general knowledge of how credit card processing works helps you understand where you might incur fees-and informs your decision about what credit card processing system makes the most sense for your business. And each of them handles a crucial step in the chain of events. From the time you insert, tap or swipe the card until the time the money is deposited into your bank account, there are a number of different parties involved. But under the hood, there’s a lot more going on. A customer hands over a card, you process it, and with Square, the money usually lands in your account within one to two days. Taking a credit card payment may seem simple enough. Order your reader now Deep Dive What is credit card processing? Order the Square contactless and chip reader. Square’s latest reader is just $59 and accepts EMV chip cards, NFC payments and Interac payments. To accept credit card payments, you need a credit card reader. What is a credit card processing company?
#Best creditcard procssor how to#
In this guide, we walk you through everything you want to know about credit card processing-and how to select the best option for your business.įAQ Four Frequently Asked Questions About Credit Card Processing 1. But it definitely helps to get the lay of the land. You don’t need to know the ins and outs of credit card processing to own and operate a business.
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