What You Need To Know About Merchant Services
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As soon as business owners hear merchant services, they would initially think that it involves credit card and debit card transactions. Although they are not wrong, they only miss the entire truth of what really is merchant services and how it can help their business grow. Read more great facts on Credit Card Processing West Chester PA, click here.
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Business that accepts debit and credit card payments uses merchant services. More importantly if they want to expand their business as well as process other payment methods such as mobile or online payment. In order to do this, a merchant has to make use of a credible merchant services provider for them to make use of the technology as well as realize how these revenue opportunities can help the business.
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It is also quite important for merchant services provider to know that each and every business is unique. Take for example and ecommerce based business can have different needs compared to a body shop. Although security is the number one priority in every establishment, the ecommerce business needs to have a higher security measures compared to that of a body shop. The body shop on the other hand may need to have a physical payment or person to person contact while ecommerce is all virtual. For more useful reference regarding Free Credit Card Machine West Chester PA, have a peek here.
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So how does the processing work? It all begins with establishing a merchant services account provider, as soon as this is done, you can then start to receive payments.
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When a merchant swipes a person debit card or credit card, the payment processor simply acts as a traffic cop between the merchant and the customer. The card that is being swiped will then send a message to the issuing bank to either decline or accept transactions. It is done by simply checking the account of the card holder to determine if there is sufficient balance to cover the transaction. Once the bank send the authorization code to the processor which will then pass it to the merchant to process the payment and then prints out the receipt which will then needs the customers signature.
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If the transaction is declined, the processor will then be notified who will then let the merchant know to inform the customer. The merchant can simply as the customer for another form of payment to complete the transaction.
At the end of the day the merchant will simply send all the authorization codes that they have received for that day to the processor which the processor will them send it all to the appropriate bank for settlement.