Credit Card Processing Experts - 8 Important Credit Card Processing Terms You Should Understand -

With around trillions in dollars charged to credit cards in the US alone, it's time to tap into the credit card market by providing credit card processing to your customers. Customers want the flexibility of paying at their convenience. They want fast check out times, simplified processing and security – all these and more can be attained by providing credit card processing.

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8 Important Credit Card Processing Terms You Should Understand

by Abigail Morrison Suppose you have a brick-and-mortar shop. It's doing brisk business. Now you are thinking of putting up an online store to expand your customers's base and increase profits. You pat yourself in the head and say“Nice going there, man”. But wait. Before you delve into the online business, you must understand that you should configure or setup your site so that it can accept credit card payments. The following are important credit card processing terms you should understand. <ol><li>MERCHANT ACCOUNT You open some sort of bank account for the exclusive use of your online business. Mind you, it's not easy to acquire this account because it imposes strict financial conditions as well as close scrutiny of your merchandise. If the bank will not grant you merchant account, you can always go to third party groups. These network groups will acquire the merchant account for you. But just remember, you can not start an online business without a merchant account. </li><li>MERCHANT BANKS Banks who specialize in granting merchant accounts are known as merchant banks. Sometimes, they are also called sponsor banks. Usually, these are the top-caliber banks in your area. </li><li>CARDHOLDER These are customers browsing your online site and making a purchase. They own credit cards and use their cards for online payment transactions. They could be your next-door neighbors, the man from a different state, or a haggard wife from as far as Algeria. </li><li>DISCOUNT RATE A small percentage of the amount deducted from every successful credit card purchase sale in your online store. Your discount rate depends on many factors--- your type of business, credit history, your expected monthly transactions, etc.. If you have a stable type of business with a huge monthly transactions, you can usually negotiate for your discount rate. High-risk business endeavors carry a higher discount rate. </li><li>PROCESSORS These are third party companies that offer credit card processing service, for a fee. Many credit card processing companies will be vying for your attention. They want you to do business with them. Exercise care in choosing your processors. While some are legitimate, some could be run-of-the-mill type charging exorbitant fees. </li><li>CREDIT CARD COMPANIES These are the names of companies that issues credit cards to individuals. Established credit card companies are MasterCard, Visa, American Express, etc.. </li><li>CHARGEBACK When a customer refutes the transaction reflected in his credit card bill, he initiates a retrieval request. This often results to chargebacks. A chargeback is the amount of a particular purchase transaction that will be immediately deducted from your account. However, in case you have the necessary documents to prove the validity of the disputed transaction, no charge back will occur. </li><li>MERCHANT Of course, this refers to you. Anyone who sells goods or services can be considered merchant.. These are the businessmen who sell items or services to customers through online websites. They can be male,female, organizations, charity groups, or what-have-you. As long as they conduct business via the Internet, they are called merchants. </li></ol> ( Abigail Morrison is a Harvard University graduate who works as financial consultant to small and medium business companies throughout the US and CANADA.)    <a href="http://www.onlywire.com/submit?u=http://www.creditcardprocessingexperts.com/8_important-credit_card_processing_terms_you_should_understand.html;t=credit%20cardprocessing;tags=Credit%20card%20processing" target="_blank" title="Add this Article to Onlywire"><img src="http://www.onlywire.com/i/onlywire.ico" alt="" />Add to Onlywire!</a>

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