Businesses, nowadays have grown in all emerging digital aspects. Every business, regardless of their size and type have indulged themselves into the processing of credit cards for payment acceptance. Apart from the goods or services, it is equally important for businesses to usher customers with vivid payment options that will be both preferrable and convenient for them. This further helps in creating a firmer customer base to grow more profoundly.
Credit card option has become a mandatory one, whether you are a business that accepts online payments, payments via POS or other terminals. The use of credit cards is easy going. As a merchant, you don’t have to have intricate knowledge of it, but some general sense would be fine to go ahead with. Choosing the right card processor can turn out to have major significant outcomes as it tends to keep your processing costs as low as possible. Since, almost everything has become automated, businesses need to be updated as of to get the benefits of automated payments, reduced manual processes, level up cash flow, drive more sales and thus more revenue.
Credit Cards- Swipe over for a no-fuss shopping journey
The popularization of credit cards has been possible for their uncomplicated, easy and fast qualities. During the COVID-19 pandemic, there was witnessed a stark increase in the usage of credit cards as a payment method of choice in an ever-evolving B2C (Business to Consumer) world. As the world went to a complete shutdown, brick and mortar shops got closed and the widespread contamination caused through physical contact, credit and debit cards saved us from the trouble. This in fact, changed the perception of many, who were once before hesitant to go for digital means of payments. The straight-forward and easy going mode of payment proved itself to be even more reliable and convenient than paying real cash.
Even in the world of B2B (Business to Business), this trend proved to be equally efficient. Businesses thriving for exceeding accounts receivable productivity and remit major advancements, credit cards become a dire need. Even, it is much more evident that businesses that accept the importance of going digital and encourage digital payments, are more likely to see a much rapid and faster growth.
Credit cards often have a positive impact on business costs and provided the tactics, if you work duly, you can keep your processing costs at the lowest. B2B businesses often lean on corporate and commercial cards. If you are running one, you must be keen to know about interchange optimization.
There are various levels through which transaction mostly pass, such as level 1 which is of basic data. But certainly, going through levels 2 and 3 means passing through high levels of data. This makes the transaction safer and more secured and the interchange costs much lower.
Let us now proceed for getting a fair understanding of what credit card processing is.
When a person makes a payment and selects the desired credit card option to make a payment, they initiate the card payment which gets enabled by the merchant. This whole process of transfer of amount and settled funds and everything that consists within and around is known as credit card processing.
For some better clarity, let us understand in depth, the transaction lifecycle of a credit card.
1. Firstly, the card terminal gathers the cardholder’s information.
2. The payment processor dispels the details to the card network through payment gateway.
3. Payment processor then put to rout the data to the issuing bank for the purpose of card authorization.
4. Once the authorization process is concluded, the status of authorization is sent back to the merchant through a payment processor.
5. The accreditation hold is placed by the issuing bank.
6. Then the payment processor enables merchant to settle up with a bunch of transactions.
7. Issued bank delivers funds to acquired bank.
8. Finally, the funds get deposited in the merchant’s account.
· How to choose the most appropriate credit card processor for your business?
1. Remarkable transaction- As this world has always been running late for something or the other, we all tend to appreciate things being done faster. Similarly, customers like it the best when the whole transaction journey gets concluded fast.
2. Legit and explicit rate structure- No matter how much the credit card processing gets complicated, the cost of service should be comprehensible and simple. So, always seek for clear, to the point and proper explanations of rates and fees from any credit card processor that you may prefer.
3. Multi-channel acceptance- Any payment processor must be able to process payments without surrendering speed, ease or service. Look for a processor that provides an all-in-all payment processing solution.
4. ERP system consolidation- This refers to the Enterprise Resource Planning platform that normally refers to business management software that companies use to collect, store, manage and interpret data. The right payment processor must orderly integrate with your ERP platform to foster interchange optimization.
5. Access to top-notch customer support- Customers play a significant role in the growth of any business. An occurring support system that is approachable to answer queries and troubleshoot any issues with an understanding approach therefore builds a successful relationship.
So, what are you waiting for? Start accepting credit card payments if you haven’t yet, for they are the stepping stone to the success of your business. Not just a vital mode of payment that eases your job but these have been a major partner in your business to keep up with your burden and reduce it with efficiency. Show your customers that your foremost priority stays to usher them with the best shopping as well as transaction experience.