Credit card processing is getting widely popular due to the number of benefits. A credit card transaction is convenient and straightforward for both parties. The entire method occurs in a matter of seconds. Credit card services are fast and precise. It is easy for merchants because they can avoid the lengthy procedures of calculations. Payment gateways send the money to the merchant’s account. The merchant receives it in, and conveniently you can check it out.
Some of the most prominent benefits of credit card payment processing services are as under:
Time is Money
One of the significant advantages of integrated credit card processing is the time saved by not having to enter credit card information into accounting software manually. Rather than manually entering every transaction detail, all batch information is automatically recorded into the system.
Transaction data is sent directly to accounting software with integrated payment processing, requiring no additional human intervention. This frees up extra time in the day for employees to do other things that they would not have been able to finish otherwise.
Legitimizes the Company
Accepting credit card payments establishes your company’s legitimacy in the industry. Displaying the logos of the credit cards you get on your website or cash register will catch the cardholder’s attention and increase their trust in your company.
Giving your consumers and prospective clients extra credit card payment alternatives will gratify them and make them content with your business, strengthening your market positioning. As a result, accepting credit cards will boost your company’s authenticity and establish rapport and trust in your customers.
Better Financial Management
Accepting credit cards and transitioning to online payments simplifies how your company conducts transactions. Rather than counting cash, electronic payments will help you stay organized and enable improved cash flow management and forecasting.
Reduce Stress On Employees
The inherent automation of online payment processing is music to the ears of your team. Your team may eliminate laborious computations and paperwork routing with the correct technology. And, with fewer people queuing in the office to submit documentation and payments, your workers will be able to breathe a bit easier. With less paperwork on your team’s desk, you’ll have more time to work on other, maybe more fascinating initiatives.
Online payment processing can also help prevent the uncomfortable back-and-forth communication that occurs when checks bounce. Online payments enable your department to perform pre-authorization. You can ensure that the funds are available and then processed once approved, minimizing the lost revenue and stress associated with tracking the money.
The transactions made through credit cards are speedy. Hence, you do not have to wait. It only takes a few seconds for your customer’s bank to notify the network whether or not the credit card payment was successful. The card network then relays the information to your credit card processor.
When you use credit card payment processing services, you will be handling everything on your own. Nobody can fraud you, as the payment won’t be successful until you add your pin-id or the secret code that has been sent to your phone directly. Furthermore, you can also deny access if you think any fraudulent activity occurs. If somebody Is trying to get cash from your account without your acknowledgment, you can call the help center to block your card right away.
Credit Card Processing Procedures
There are a few steps to follow before your payment becomes successful. This is something that you can do within a few seconds. This is a very simple and convenient method. Here are the steps that you have to follow:
Obtaining Card Information
The first stage in processing a credit card payment is gathering the cardholder’s credit card details. The credit card number, expiration date, and name on the card are all examples of basic information. Some banks also require some additional data. Requiring this additional information reduces the danger of fraudulent behavior and is typically a brilliant idea to protect your firm credit card payment processing services.
Stage of Authorization
Your consumer (cardholder) requests a purchase from your company by presenting you with their credit card. Your POS terminal sends an authorization request to the acquirer after inserting the card into the terminal and entering their PIN.
The issuing bank receives the payment request and checks to see if the cardholder has sufficient funds to make the purchase. The bank will also take security precautions to confirm the cardholder’s information and determine whether the transaction is fake or real. If you have enabled two-factor authorization, you will get a code on your given phone number or email id. Your payment won’t proceed further until you do not provide the code.
The last stage of payment procedure services is clearing. The clearing stage occurs when transaction information is delivered to the cardholder and merchant services in the form of statements. The merchant transmits a batch of accepted credit and debit card payments to the acquiring bank or processor at the end of each business day.
The card processing company then sends the details of each transaction to the appropriate credit card network, which ultimately sends it to the proper card-issuing bank.
In conclusion, we can say that credit card processing has become a part of our daily lives. You need an integrated credit card processing system to manage a doctor’s clinic or a multinational supply chain company. It is simple to use for both you and your customers.
Integrated credit card processing systems enable you to integrate critical business data. That includes orders, inventory levels, shipping, and invoicing, within your ERP system, allowing your organization to run more efficiently.
When a credit card processing system is connected with an ERP system, data is automatically shared between separate systems, reducing the need for manual data entry. Furthermore, your company will always have a single version of the truth with various methods in sync.