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What Is A Credit Card Processor? By: Credit Card processor is a company appointed by Ac
Credit Card processor is a company appointed by Acquirer Bank to process online Credit card transactions. It is meant only for online payments for goods and services. Before we understand more about Credit Card processors, it is pertinent to understand the Key players in the online Credit card payment process.
Online credit card payment processing has two phases:
1. Authorization
2. Settlement
The Key players in the Credit card payment process are:
1. Card Holder
2. Merchant
3. Acquirer Bank(or it's processing company called Credit Card Processor)
4. Card Network
5. Issuer Bank.(Card holder's bank)
Steps in Authorization process:
1. In the first step, the card holder offers his Credit card as payment option to the merchant or the business owner who sells his goods or services.
2. The merchant enters the credit card details of the card holder or customer in the credit card processing terminal.
3. The details of credit card are sent to the Credit card Processor or the acquirer Bank (Merchants' bank). These days, banks have increasing outsourced payment processing to companies that specialize in payment processing. In this case, a Credit Card processing company plays an important role. For example, EBS is a company which processes online payments for various banks in India. You can check out its website for more information.
4. The card network which would mean Visa, MasterCard or American express, would transmit the Card details via their network to the Card Issuing Company. For example, HDFC Bank issues its credit Card and has a MasterCard logo in it. In this case, it would be MasterCard who acts as the intermediary in the payment process.
5. The Card issuer bank, who is obviously the customer's bank, will receive Card details and transaction amount via card network from the credit card processor or the Acquirer's bank. The issuer bank processes the transaction order, and checks customer credit limit, account balance, and as to whether the account stands as credit worthy or not. Once an assessment is done, it approves the transaction. This approval is called Authorization.
6. Once the transaction is authorized, the information is relayed by the card network to the merchant at the card processing terminal.
7. As a final step, the merchant at the terminal authorizes the transaction, and the digital record of the authorizations done in a business day are kept stored, in order that they may be settled at the end of a business day.
Now that Authorization process has been completed, the actual settlement process begins.
Steps in Settlement process:
1. The merchant electronically sends his stored digital data called the Authorization batch. Authorization batch is data having information related to approved transactions with the Card holding customers. This task is usually done at the closing of a business day.
2. The Credit card payment processor receives the authorization batch on behalf of the acquirer's bank. It relays it forward to the Card issuer bank via the Card network (Visa, MasterCard etc.)
3. The Issuer bank credits the acquirer bank with funds that arise from the proceeds of sales. The funds are credited then, to the Merchant after deduction of networking and payment clearance expenses of it, and the Card processor.
4. The Issuer bank is then required to collect payment from the card holder via Credit statements which depend upon the kind of payment options and the agreement between the Card holder and the issuer.
Thus, in this manner the Credit Card Payment process occurs every time a Card is swiped in a Card processing machine.
It is important to note that monthly payments, expenses etc have to be incurred by the Merchant in order to maintain his merchant account with the Credit Card processor, or the bank, along with other expenses like Card network usage etc.
All of these processes are meant to explain and elaborate as to how the process cycle is completed in a matter of seconds to be frank. This is far better than normal bank transactions that take a lot of time to settle.
As a business person, it is also important to understand how such services, such as provision for credit card payment, may incur some expenses for the Merchant. But considering the ease of transactions, and the easy availability of credit, it makes it imperative to consider having a merchant account opened by Card payment processors in order to facilitate quick transactions.(read entire article)(posted on: 2014-05-14)
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Recommended Procedure For Analytical Instrument Calibrating By: Calibration Laboratory
There are many types of instrument available in the market but in calibration process we should select the instrument by which our all requirement for the particular measurement can be fulfilled and the instrument is most convenient for that measurement.(read entire article)(posted on: 2014-05-14)
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Tips On Pulling Off A Smooth Move By: Jesse Burns
Often when we move to a new place, the stress of it all can be overwhelming, much more so when you aren't properly prepared. Read on to find out exactly what you need to do to keep moving day from being the stressful event that it is to and turn into the smooth transition that it should be.(read entire article)(posted on: 2014-05-14)
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Harvard Black Mass By: Cristy Hu
A Harvard student organization is moving forward with the reenactment of a black mass. I am hearing a lot of conflation and little common sense amongst those defending the "mass".(read entire article)(posted on: 2014-05-14)
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Buy Fully Furnished Homes At Ottawa By Referring Brokers Of Gale Real Estate By: John Michel
People have been investing for homes in popular region like Ottawa because of the numerous facilities available in this area and also availability of houses for all sections of society ranging from average to upper class.(read entire article)(posted on: 2014-05-14)
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Enjoy Time Even While You Are Travelling With Live Streaming By: Davis Morin
Live cricket stream on ipad, is quite interesting time pass as of today not only for the youth but also for most other age group in the society as such.(read entire article)(posted on: 2014-05-13)
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Ways To Look For The Right North Shore Garden Maintenance Company By: Carol hardie
Are you in search of some good garden maintenance company? You will have to keep in mind some essentials for all this. As there are too many providers and looking for one will never be a problem and thus you will not feel the need of these tips. But the main issue is choosing a right and best one. Thus you also need to see that you follow a few simple aspects.(read entire article)(posted on: 2014-05-13)
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How Does Online Shopping Differ From Traditional Shopping? By: Shopping means shopping, isn’t it? Well not defini
Shopping means shopping, isn't it? Well not definitely. In the earlier years, the only method to shop was leaving your home and visiting a store. Now, the internet has radically changed the manner in which we spend money. But how does it fare when compared to traditional shopping?
Well, when it is about Online Shopping Vs Traditional Shopping, we should weigh them both to see how they compare with one another:
Traditional Shopping
In traditional shopping, you just have to take a ride in your car to your favorite shopping center or store and you purchase what you desire. You can pay with cash or credit card. In some cases you may pay with a check. You do avail the chance to view the product prior to buying it and you may see your credit card if you choose to pay with that method.
All this looks great but there are always two sides to the same coin:
The disadvantage you may have to face while traditional shopping is that the store at which you are shopping might not accept your payment method. It may not possess what you require. You may even find that that the product it offers is costly than what you intended to pay. You might be aware of another store having it, but it may be out of stock because it sells it at a lesser cost.
There may be times when you shop the traditional way. For example, you may require an item right now, which holds true for grocery shopping. When you require milk or formula food for your baby, you have to visit the store and acquire those things quickly.
Online shopping
When it is about online shopping, you are not required to leave your home at all. You just have to sit at your computer, browse the diverse online stores, and search for the thing you require. However, there is generally only one method to pay. You may only pay through credit or debit card. There are some websites which permit you to utilize your PayPal account or they will allow you to send them a check prior to sending you the product. The check method doesn't suit aptly when you require the item immediately.
As for the disadvantages, you cannot check your credit card number similar to an in-person transaction. However, you are rest assured of doing business with a secure site by looking in the address bar and verifying if there is an encryption in place. You may also go through website reviews to ensure a site is secure. You also do not get the chance to view the item in front of you before you purchase.
The advantages are still there because if you cannot search an item at one store, you may get it at another. There are really very few things that you can't get on the internet. You may not desire to do grocery shopping online, but gifts, clothes and several other items can certainly be bought and shipped to your door. If you are not satisfied with them when you get them, you should always make sure that you are dealing with a firm which has a good return policy.(read entire article)(posted on: 2014-05-13)
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Tricks For Choosing The Right Roof Repair Kelowna Contractor By: Cassi Krey
Without the presence of a suitable roof, your building can be more susceptible to numerous damaging factors just like mold, rot, water damage and some other construction issues. Additionally, without a proper roof repair, it might cause your building to become a structural risk as well as a safety hazard for you and anyone within it. More especially if you own a commercial building, you need to keep your roof in continuous check, and subject it for maintenance as soon as you see signs of damage as well as other roof-related problems. If you reside in Kelowna, then you are in good luck. You can find hundreds of legitimate roof repair Kelowna contractors who can present roof repair services to suit your needs. But how could you choose the right one which can suit your preferences?(read entire article)(posted on: 2014-05-13)
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Why We Pick Fabric Buildings Instead Of Solid Structure Builds By: Issac Ring
Once you think of a fabric building, you may instantly think of a temporary structure like a tent or a marquee that will be used for a few days but then removed. Fabric buildings however are actually used by lots of businesses and industries as an option to aluminium or steel structures, their flexibility and affordability meaning that they're often the most appropriate option around.(read entire article)(posted on: 2014-05-13)
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