Over three billion people from all over the world use and own credit cards. Each person has been shown to have a minimum of three credit cards to their name. Just looking at these numbers, you know very much how essential credit cards have become in the lives of each and every person from paying their bills to shopping for stuff. Credit cards are also becoming something that both big and small businesses are accepting. If you own a business and you intend to attract more customers, you should consider getting credit card processing solutions.
For you to better add credit card processing to your business operations, you need to have a good understanding of the process firsthand. Essentially, credit card processing is a type of financial transaction that allows electronic access to the customer’s account. Presently, you will learn that there are four big names when you talk about credit cards, and once you start processing any of these names, you can enhance your business in more ways than one. Visa gets the number one rank for the major credit card names with over 261 million users globally. MasterCard follows with over 176 million users. Making the third spot is American Express, wherein in the US alone, there are over 50 million users.
There are many benefits that you can enjoy with the use of credit card processing solutions. Though most businesses want to get cash as payment, there are many benefits to accepting credit cards as payment. On the part of your customers, they will see your company as credible when they learn that you accept credit card payments. If you accept credit cards, your customers will think that your company is reliable and safe to deal with. Trust remains an important aspect in running a business. If your customer or prospect trusts your business, chances are they will buy from you many times.
Credit card processing works using two major steps. These two steps are authorization and settlement. Authorization is a step that involves getting approval from the bank for a transaction that is pending. In this step, the customer or buyer must provide the necessary credit card details like their credit card security code, account number, and expiry date.
Meanwhile, settlement is the step that processes your transaction. In this process, any authorized bank transaction will mean transferring funds from the bank account of your customer to your company account. However, if the credit card is not authorized for the transaction, choosing another payment method or using another credit card may be necessary.
When it comes to credit card processing, the equipment used varies. With advancements of technology, the availability of several credit card processing solutions and avenues has made startup businesses enjoy this payment option too. Before choosing the right equipment for your business, make sure to check your current credit card processing solutions.