What Is The Process For Credit Card Payment?
When people go outside their house, most of them do not bring money anymore inside their pockets. It may be possible that there will bring small bills in order to purchase small items but most of the time, they are bringing credit cards or debit cards with them. Due to the increasing popularity of credit cards, the process of credit card payment has also increased.
In order for you to carry out the process in credit card payment, you must have an equipment to complete it. When the customer runs the card into the machine, it is these equipment that reads and analyzes the information from it. After the device has read all the data that is needed, it will then transmit it to a terminal. The owner of the card will be deducted from his transaction as the terminal is send the data to the proper financial institution which is the authority in deducting the funds. once the data is completed which basically takes seconds to do, the customer can now leave the store and the transaction is finished.
To the business owner that allows the credit card payment process, the whole transaction is actually not free. The portion of the whole transaction will go as a fee to the third party that links the merchant and the financial institution that deducts the money from the customer. it may differ on the charge fee depending on the third party that provided the service. But basically, the charging fee is from 2-3% of the total amount that was transacted.
Compared to customers that paid cash, the one that uses credit cards will not be able to produce money right away for the merchants. Once every thirty days is the required time for banks that provided the credit cards for them to pay the stores or merchants that made the transaction. Customers will be charged convenience fees as the merchants will have to wait a long time for them to get their money. The amount of the convenience fees can range from 1-5 dollars so customers don’t really have to worry that much about the amount.
Most of the stores will sometimes require customers to purchase a minimum amount before they allow any credit card transaction. It is because the financial institution will also charge the store for debit transactions. If the customer will only purchase less than the minimum amount than is required, the charge fee is waived by the store. A minimum of 5 dollars is required for every transaction so that they will be able to use their debit cards.
It is always required for credit card and debit card holder to have a personal pin on their cards. A personal pin is there in order to protect the card holder from unauthorized use.