A merchant card is a credit or debit card linked to a merchant account which can be used to make payment by the account holder. A credit card can be issued by a variety of firms providing banking services such as merchant banks, online payment processing firms etc. There are different types of credit cards available for use, the one you choose or are given depends on your account type and the range of payment processes you carry out. There are also different methods of processing credit cards and they are listed and explained below.
Methods of Processing Credit Cards.
The various methods for processing credit cards to complete transactions have evolved by way of the years since its inception. The techniques listed beneath are accomplished in accordance with the period they had been designed:
Submitting credit card slips: this really is the earliest procedure used in processing credit cards. The procedure entails submitting filled credit card slips for your merchant bank for the payment transaction to be carried out. This method is still practised at this time by some banks but has been relegated towards the background as a result of advances in electronic banking.
Credit Card Terminal: these are stand alone terminals the usage of credit cards for payment could be performed. The credit card terminals electronically procedure your payment this it does by; matching offered facts just like a password with registered documents obtainable at your merchant bank prior to issuing out funds. It carries out its checks and processes via the online world and initiating the payment procedure is completed by either swiping your card or inserting it in. An ATM machine is a popular instance of a credit card terminal. These terminals are powered electrically.
Automated Response unit: this can be a credit card processing approach that is definitely accomplished with all the use of a phone. It truly is also called the voice authorisation approach. The process involved in performing transactions are; initiating the approach by creating a call to your merchant bank operator, keying in the relevant details for cross-checking/ authorisation and lastly making the transaction. This processes take place in seconds and is effortlessly accomplished.
Payment Gateways: the usage of payment gateways are certainly one of the important techniques in which cash transactions are performed on the internet. These gateway providers are third party banks who act as a middle man amongst merchant account providers and consumers. A transaction process is usually initiated by login to your account with correct details and carrying out a transaction. Safety checks and concerns are also asked to eliminate the possibility of world-wide-web fraud.
Level two or three card processing services: some government agencies and international organisations use special types of credit cards for money transactions.
Other forms of merchant credit card processing are obtainable but the above listed techniques are the major ones applied by buyers. Card holders are warned to have strong pins and to guide them jealously for safety reasons. If a card is missing appropriate and immediate actions need to be carried out to block all transactions the card performs.
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