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Credit Card Transaction And Why It Is Important Amid COVID-19
Credit card transaction has become a hot topic amid COVID-19. The coronavirus outbreak has changed the entire ecosystem of online payment. Yes, it has brought several restrictions that people have to follow in order to keep themselves safe amid this critical situation. One of them is maintaining social distancing. People nowadays are familiar with the fruitful outcomes of technology and credit card is one of them. Considering the present situation where online marketplaces are advancing, credit card transactions are playing an important role. People are now giving more emphasis on credit card transaction instead of the card transaction.
International Payment Solutions understands the current situation very well. Therefore, we at International Payment Solutions want the small merchants to understand the new ecosystem of online payment. Otherwise, they will face the problem to accept credit card payments online. If you are a merchant and want to expand your business, you must enable online bill payment service or credit card payment service in your business. It will help you to survive in this competitive market. However, the credit card transaction is basically a real-time process. But, the process is not as simple as it looks. There are certain aspects and institutions inextricably associated with this real-time process. If you want to accept credit card payment, you must understand this process very well. We have explained the process here. So, have a look at the following points:
First of all, a credit card transaction is initiated by the cardholder. The cardholder makes the bill payment using their credit cards. After that, the online payment gateway securely transfers the transaction details to the merchant processor.
The merchant processor plays a very important role here. The processor handles the credit card transaction. This platform gets the details through the secured online payment gateway. After getting the details, it sends the information to the credit card network. The network verifies the information. After verifying the information, the credit card network sends the information to the credit card issuing bank.
The bank checks the cardholder’s account. If the account consists of the required balance, the transaction gets approved. Otherwise, the bank declines the transaction.
After that, the bank sends the information to the credit card brand. The brand forwards the information to the credit card processor.
So, this is how the credit card transaction is completed.
Well, the merchant does not receive the payment instantly. Yes, the transaction is a real-time process and the money is deducted from the cardholder’s account instantly. But, when it comes to the merchant’s profit, the money does not get credited instantly in the account of the businessman. It takes 1 to 7 business days to get credited in the account of the merchant.
However, the entire thing depends upon the credit card processor. Moreover, the profit amount also depends upon the credit card processing rate. Different merchant processor solution offers different credit card pricing structure. We have already explained these structures so that you get a concrete idea about this.
We at International Payment Solutions offer interchange plus pricing structure. It maintains the transparency between the business owner and the payment processor. Moreover, this pricing structure helps the merchants to understand the different rates associated with the credit card processing fee.
Why It Is Important In 2020
Credit card transaction is one of the important aspects of the 21st century. People are preferring credit cards and debit cards nowadays. We have added some advantages of the credit card transaction. If you want to accept online payment through the payment terminal, you must go through the following points:
Allow You To Expand Your Business: If you start accepting online payment through the payment terminal, you will be able to expand your business easily. Yes, the number of credit card user has been increased. Therefore, if customers can get online payment option in your business, they will become your regular customer. Moreover, they will promote your business verbally in their private network. On the other side, you can accept international payments as well. Thus, you can easily expand your business flawlessly.
Increase The Cash Flow In Your Business: Well, if your business allows the customers to pay online, it will create a solid impression upon them. The online payment system has flexibility. It allows you to accept all forms of payment along with the credit card transaction. Therefore, the customer base will become strong and consequently, you will be able to increase the cash flow in your business. You can also make an online payment to your suppliers. So, the supply chain will also be maintained.
Not An IPS Merchant?
In order to accept online payment, you must become a merchant processor of any payment processor. International Payment Solutions is undoubtedly one of the best merchant processor solutions. The company offers advanced payment equipment. With the help of these, you can easily accept online credit card payment. So, what are you waiting for? Get in touch with IPS today.