Online credit card processing is the process of taking card payments and converting them into digital cash. Merchants, payment processors, and banks all have a role to play in the process of taking card payments. But it’s not always clear who will become involved in the transaction, how much it will cost, or what the process will look like. Let’s take a closer look at what credit card processing is, the different types of credit card processing, and what you should look out for when choosing a credit card processing company.

What is Online Credit Card Processing?

Online credit card processing is the process of taking card payments and converting them into digital cash. Merchants, payment processors, and banks all have a role to play in the process of taking card payments. But it’s not always clear who will become involved in the transaction, how much it will cost, or what the process will look like.

Types of Credit Card Processing

“One-Time” vs. “ Ongoing” vs. “Ongoing Monthly” vs. “ Ongoing Bi-Weekly”

* “ Ongoing Monthly” – The easiest way to understand “ongoing” processing is to think about how long payments will last. This is the most common type of credit card processing. The merchant will take the payment and the bank will add it to the cardholder’s statement balance. The merchant then begins the 30-day clock to process the next payment. If the merchant has a longer timeframe, they can ask the customer to pay early and pay interest on the amount they pay in advance.

* “Ongoing Bi-Weekly” – “Bi-weekly” payments are common in the healthcare industry. If a cardholder makes 3 monthly payments, the 4th payment is made directly to the healthcare provider.

* “Ongoing Monthly” – “Monthly” payments are uncommon. Because there is so much more risk and cost associated with “monthly” payments, most businesses don’t offer them. But some businesses, like restaurants and healthcare providers, can end up benefiting from “monthly” payments because of the volume of customers they have.

Things to Look Out For When Choosing a Credit Card Processing Company

* Competitive Pricing – Credit card processing rates are set by the payment networks. So the cheapest option might not be the best option for your business. Make sure any credit card processing company you’re considering is charging the lowest price possible.

* Customer Service – Most credit card processing companies are under no obligation to solve any customer service issue you have. But, if you have a specific question about the card payments your business is receiving, you might get more favorable service.

* Ease of Use – The process of sending credit card payments should be easy and straightforward. If there are too many steps or processes, you could lose more money than you have to spend.

* Acceptance Rate – The success of your business could depend on the rate of acceptance of the credit cards you accept. The more acceptable cards you accept, the more credit card transactions you can process.

* Your Business’s Plan – Every business’s plan is different. Some businesses want to start with a small number of credit cards. Others want to start with a large number of cards.

* Credit Card Processing Fees – Processing fees are charged by credit card companies, not your credit card processing company. Make sure you’re only considering credit card processing fees for the card networks your business will be using.

* Credit Card Transactions Are Reported to Credit Bureaus – The more credit cards you process, the higher your credit score. Your credit score is a key factor in whether you’re approved for any new loan or credit card. It can also impact your ability to get financing for an upcoming project or expansion.

* Credit Card Transactions Are Recorded in Sales Leads – The higher your sales volume, the more customers you can reach. The only way to increase sales volume is to get more customers. So the best way to get more customers is to get more credit card transactions.

* Rebuilding Credit Scores Take Time – Credit scores are based on a number of factors, including how often you pay your bills on time. So the best way to increase your credit score is to get more credit card transactions.

* Businesses That Process More Cards Are More Successful – Businesses that process more card payments are more successful than businesses that process fewer card payments. They tend to be larger, have a longer lifespan, and have higher profit margins.

Summary

Merchants, payment processors, and banks all have a role to play in the process of taking card payments. But it’s not always clear who will become involved in the transaction, how much it will cost, or what the process will look like. To reduce the risk of getting stuck with unreliable or unaccepted payments, you can choose DSSR Payment Solutions, the best credit card processing company in the USA. This company takes card payments on your behalf and charges a monthly fee for their services. Y