credit card processing company

by Trisha Echols

    There are a number of circumstances where you need to apply for a credit card processing service. To begin with , you have a thriving retail business and your customers clamor for a more flexible payment options. Instead of cash, they want to pay using their credit cards. In another instance, you own a merchant website and you need credit card processing service to allow online shoppers to purchase via their credit cards. Lastly, you are a mobile merchant. You business takes you in far away places. It would be very risky if you carry huge amount of cash payments with you. In this case, you can opt for credit card processing service by carrying handy, wireless mobile card terminals where your customers can simply swipe their cards.

    Now, it’s time for you to look for companies that offer credit card processing service. And in this regard,there are a few business institutions that offer this service:

1. LOCAL BANKS

   Surely you maintain a savings or a checking account with a local bank. You might not be aware of it but these banks offer various customer services, among them credit card processing service. You can discuss your processing needs with them and chances are, they will accommodate your request. However, they implement stringent rules before giving you a merchant account. They will have to examine your type of business, your capital outlay, your business history, your projected sales, etc… It is very difficult to acquire a merchant account with a local bank, but they are you best source of prompt, dependable service.

2. FINANCIAL SERVICE PROVIDERS

   While most card issuing companies do not usually offer credit card processing, some do. They are Discover and American Express cards. These two card companies offer credit card processing for merchants. You can visit their homepage and inquire about these services. In the future, other major card issuing companies like Visa and Mastercard may join the fray and follow suit.

3. TRADE ASSOCIATIONS

   In some cases, your local business groups and trade associations offer credit card processing service, especially to merchants whose merchant accounts applications have been repeatedly turned down by the big players in the industry.

4. THIRD-PARTY PROCESSING COMPANIES

   They can be considered as the backbone of credit card processing business. They handle the authorization, reporting, settlement and billing aspect of credit card processing service. Even merchant banks oftentimes subcontract the credit processing services in behalf of the banks’ business clients. These third party processing companies deal with the nitty-gritty job of credit card processing.

5. INDEPENDENT SALES ORGANIZATIONS

   These independent sales organizations are not really credit card processing service providers. At most, they can be considered as a go-between or brokers between third-party processing companies and merchants. As such, they charge stiffer fees. Most of their clients are merchants whose applications for credit card processing service had been turned down by big time processors.

   Credit card processing is a growing business. There could still be many types of companies that offer card processing service, but for the moment, merchants have to contend with the five as listed above.
   ( Trisha Echols currently is a long-time financial consultant with established consultancy offices in Amsterdam, Halifax, Malaysia and other key cities. Her clients belong to the top 500 companies in England and in the United States. Miss Echols serves as business consultant for a number of credit card processing service providers, including www.creditcardprocessingexperts.com. She does lectures on strategic business practices and also writes for various magazines on business matters.)