Merchant credit card processing, or merchant services, involves handling electronic payment transactions on behalf of a merchant. This involves obtaining sales information, receiving authorization from card issuers, collecting funds from the issuing bank, and sending payment to the merchant.
Every credit card transaction involves 4 main parties:
Fees are paid to the issuing bank and the merchant services provider so the amount the merchant receives will be slightly less than the amount charged by the customer.
The fee the issuing bank charges is called the interchange fee, and this fee depends on many things, including: the type of transaction, the associated risk of the transaction, the type of card, and the volume of the merchant. The bank or company that provides merchant credit card processing services charges the discount rate, which may be alongside other fees. Both of these fees are a percentage of the transaction, usually with a small fixed rate per transaction.
When you want to accept credit and debit cards, you will be working with the acquiring bank. This entity’s responsibilities are often split between the merchant service provider, who you will be in contact with. In many cases, there is another entity behind the merchant account provider: the credit card processing company. This entity will perform the mechanics of the transactions, including transmitting information between parties.
Nova Bancard offers Mechant Credit Card Processing for all your payment processing needs. Please complete our application to begin the profitable journey of becoming one of our customers.