Electronic Credit Card Processing

Electronic credit card processing will allow customers to purchase products or services in person, through the mail, by telephone, or on the Internet. Accepting credit cards for payment may result in increased sales. Customers recognize companies who accept credit payments are reputable businesses. Discount rates are fees charged to the merchant based upon electronic credit card sales. A monthly statement is provided to the merchant of all transactions. Some companies' that offer processing services provide detailed weekly statements for an additional fee.

A processor may include a terminal or software. Processing may be utilized through telephone, fax machine or a virtual terminal resulting in lower costs compared to a POS terminal. A virtual terminal allows the merchant to process transactions online. Through the network communication an authorization is given on the credit card and a hold is put on the transaction to secure the funds. The processor sends a request to the cardholder's bank to settle the amount of the transaction to the merchants account. Most companies servicing electronic credit card processing use security encryption methods to secure customer account information. Some fees may include a set-up fee and a monthly service fee.

The ability to process transactions over the phone allows the merchant to input customer information online and notification is delivered immediately for approval. This is a very convenient service for both the consumer and the business. Other services for processing over the phone may include touchtone, fax machine, software, and batch processing. With many different avenues of accepting electronic credit card processing customers have many choices in purchasing services and products. One of the growing ways to increase sales in today's world is by accepting online sales. Selling directly from a web site reaches the customer who prefers shopping from their computer.

A business bank account is necessary in acquiring merchant services for electronic credit card processing. Completing an online application will initiate acquiring services for accepting credit cards from customers. Some merchant services online offer free accounts with low discount rates. Some offer free setup for a limited time. Other free services offered associated with this service may include terminal processing, recurring billing, telephone support, unlimited users, batch processing and daily batching. Customers prefer using credit cards to shop online because of the convenience and peace of mind. "The LORD will give strength unto his people; the LORD will bless his people with peace" (Psalm 29:11).

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