Credit card transaction and mobile wallet transactions are some efficient ways to make bill payments online. Standing in the 21st century, people have already understood how technology can add convenience to their daily lifestyle. Well, the advanced payment terminals have already changed the whole ecosystem of the online payment and people are really enjoying it. Nowadays, more than 80% of transactions are made online. People use credit cards or debit cards even for purchasing a small cup of tea or coffee. However, it is very clear that people are now giving more emphasis on the cashless transaction.
Standing in this situation, if you are still operating your business offline, you are actually making a big mistake. Yes, mobile wallets and credit cards are leading the online payment industry forward. As a merchant, you have to understand this situation and you have to install advanced payment terminals that will let you accept credit card payments online. However, before getting into the payment equipment, you must understand the credit card transaction as well as the mobile wallet transaction very well.
Credit Card Transaction
A credit card transaction is not a new thing. But, if you are a new online merchant, you must understand how it works. Credit card transaction is basically a real-time process and here, we have elaborated the process:
Customers must have a valid credit card to initiate such transactions. Cardholders can make an online transaction or they can make a purchase at the outlets. However, the transaction process is almost in both cases. The credit cardholder initiates the transactions using their credit cards. After that, the online payment gateway transfers the data to the merchant processor. The online payment gateway then verifies the information and shares the same with the credit card company. The credit card company directly shares the same with the respective credit card issuing bank. The bank finally checks the available credit and depending upon the available balance in the cardholder’s account, it either rejects or accepts the transaction.
Finally, the bank sends the same with the credit card network and the network verifies the information. After verifying the information, the network sends the same to the credit card processor. Thus, the merchant processor solution completes the transaction. However, the merchant will not get the balance instantly as it will take time to process all the transactions of a single day. Therefore, the transaction amount will be credited in the merchant’s account within 1 to 7 business days. It depends upon the terms and conditions set by the merchant processor.
Mobile Wallet Transaction
The mobile wallet transaction process is almost the same. However, here the customer does not need to provide the credit card details. Instead of this, the customer has to link his bank account to the mobile wallet. It is a kind of prepaid transaction where the transaction amount will be deducted directly from the bank account. However, you can also add a specific amount of money to the wallet. In such a case, you don’t need to rely on your bank as the money will be deducted from the digital wallet. It makes the transaction quick and easy. Sometimes, the server of the bank goes down and in such a case, your transaction might get failed. Therefore, a digital wallet can help you in such a situation.
Difference Between Mobile Wallet And Credit Card Transaction
Credit card transaction and mobile wallet transaction- both are reliable. But, there are certain differences. In case of credit card transaction, you must have your own credit card and you have to provide PIN while making the transaction. However, nowadays, credit cards are coming up with an EMV chip that supports tap and pay. It is a kind of contactless transaction where you don’t need to swipe or provide transaction PIN.
On the other side, mobile wallet transaction is faster than credit cards. Yes, here, you don’t need to carry any additional card as you can directly make transactions through your phone. There are many top brands such as Apple, Google and Samsung are offering mobile wallet feature. You just need to install mobile wallet applications such as Google Pay, Apple Pay, and Samsung Pay. After that, you need to add your bank to the wallet. Now, you are ready to make an online transaction with the mobile wallet. The mobile wallet supports QR code payment where you need to scan the merchant’s QR code and your transaction will be completed.
In short, both credit cards and mobile wallet transactions are reliable and faster. But, mobile wallet transaction is more flexible and it will give you some additional features that you might not get in the case of the credit card transaction.
Not An IPS Merchant?
Now, if you want to accept credit card transactions and mobile wallet transactions, you must need a merchant account. International Payment Solutions is one of the best payment processors. If you want to elevate your business to the next level, you should not wait further. You just need to get in touch with IPS and register yourself as an IPS merchant.