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Things That You Should Ask Your Merchant Processor

Things That You Should Ask Your Merchant Processor

Merchant processor is inextricably associated with online business. Well, we all are living in a period where transition becomes an inextricable part. With the advancement of technology, everything is getting an elevated shape and new things are coming every day. If we specifically talk about the businesses, small merchants are implementing new strategies in order to accept credit card payments online. People are now giving more preference to contactless as well as online transactions. Moreover, contactless transactions have become inevitable in the retail shop after the arrival of COVID-19.

Considering the present situation where physical distancing becomes very important, retail merchants are trying their best to upgrade their business equipment so that they can cope up with the present situation. Now, if you want to accept online payment from the customers, you must pair your business with a merchant processor. Merchant processors provide an online payment gateway through which you can accept online bill payment. Now, if you are new to online business, you might have problems as online pricing structure is quite complicated. Moreover, different payment processors have different plans for the merchants.

If you are new to online business, you must understand that credit card transaction is completely a real-time process. But, merchants do not get their money instantly in their bank accounts. The payment processor takes 1 to 7 business days to deposit the amount in the merchant’s bank account. We have explained the real-time credit card transaction process below in order to give you a concrete idea:

  • The customer initiates the credit card transaction by swiping or tapping or hovering over the payment terminal.
  • After that, the merchant processor solution passes the information to the credit card network such as MasterCard, American Express and Visa. The credit card networks share the information with the credit card issuing bank.
  • The bank checks the available credit. Depending upon the credit or fund available in the cardholder’s account, the credit card issuing bank approves or declines the transaction.
  • After that, the bank shares the same information with the credit card network. The credit card network passes the information to the merchant processor. Thus, the entire transaction gets completed.

By now, you have understood the online credit card transaction process. Now, choosing the perfect payment processor for your business is the most challenging task. We at International Payment Solutions understand this situation and therefore, we have added certain aspects that you should ask your payment processor before choosing them. So, don’t miss to go through the following points:


When you are pairing your business to a new merchant processor, you have to go through the contract very carefully. You should ask for the duration of the contracts. Many payment processors offer yearly whereas many offer monthly plans. We at International Payment Solutions offer a monthly plan in order to provide an extra layer of flexibility. You should ask your payment processor what will happen if you cancel the contract before the term. Moreover, some payment processors include auto-renewal clauses. You should go through the clauses very carefully.

Processing Fee

Processing Fee is another important topic that you must ask your merchant processor. Different payment providers offer different credit card processing fees. Basically, there are various types of processing fees inextricably related to online transactions such as flat-rate processing, interchange plus processing and many more. Interchange plus pricing is a very transparent and complicated pricing structure and we at International Payment Solutions offer out merchants interchange plus pricing. On the other side, a flat-rate pricing structure is very simplified and if you are new to online business, you might go for this one. But, here is the trick that payment processors use. In the case of a flat-rate pricing structure, you have to pay a fixed rate for every transaction. We have already elaborated it and if you minutely go through it, you will get to know that you will not be able to make a huge amount of profit.

However, if you have a new business and your overall online transaction volume is very less, you can go with a flat-rate pricing structure. In such a scenario, you will have a profit in your business.

Real Processing Fee

Well, there are different types of fees that a merchant has to pay at the end of the month. Sometimes, it is not included in the contract. Therefore, you should make it very clear. You should ask for the real processing fee where many other fees are included along with the interchange plus fee or flat-rate fee. At IPS, we are very transparent with our merchants and we make everything clear in the very beginning.

Not An IPS?

By now, you have probably understood the things that you should ask your merchant processor. Now, if you want to achieve the best result in your business, you must go with International Payment Solutions that is an efficient payment processor. So, don’t just wait. Get in touch with us as early as possible.

Start accepting credit card online and/or in your store today! , Fill out the below form for a free consultation, we will get back to you shortly:

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