Credit cards are used by more than 3 billion people worldwide. Each person has at least three cards. Credit cards are essential in everyone's day, whether they are used to shopping for clothes or paying the bills. Credit card processing is a great way to expand your business and bring in more customers or clients.
What's credit card processing?
Credit card processing, technically speaking, is a financial transaction that involves electronic access to the client's account. There are currently four major credit card companies, and any one of them could help you grow your business. Visa is the first, with 261,000,000 users last year. MasterCard is the second most popular card, with 176 million users. American Express is third, with more than 50,000,000 clients in the US.
What are the advantages?
While cash payment is great, accepting credit card payments has many benefits. It makes your company more credible to clients. Customers will feel more comfortable dealing with a company that accepts cards. Trust is an important aspect of the business. If a client feels safe and secure with you, he will likely make a purchase at your store.
Credit it works
Credit card processing involves two steps: authorization and settlement. Authorization refers to obtaining bank approval for the pending transaction. This step requires the buyer to provide the necessary card information such as the account number and expiry date.
The settlement involves the actual transaction being processed. If the transaction has been authorized, funds will be transferred from the bank into your company's account. If the transaction is not authorized, the client will need to choose another method of payment or use another card.