The bank will then either approve or deny the transaction, and send the result back to the processor.
ONLINE PAYMENT PROCESSING What Are Online Payments? These can be used for both card-not-present transactions and card-present transactions when paired with a device for swiping or dipping credit cards.
#Cellular credit card terminal software#
Virtual Terminals are software or web-based solutions that allow merchants to process payments from their desktop or laptop. VIRTUAL TERMINAL What Is a Virtual Terminal? They can also key-enter transactions using an app or browser on the device. The merchant can swipe or dip cards with hardware plugged into their phone or tablet, transforming them into a formidable payment platform. Mobile devices can now act as a mobile credit card reader to accept payments in a variety of ways. MOBILE PAYMENTS What Are Mobile Payments? A salon POS, for example, might want to offer an appointment scheduling feature. A POS system is similar to a terminal, but it’s generally tailored to meet the needs of each business.
The POS is effectively the central component for your business where elements like sales, inventory and customer management merges. POINT-OF-SALE (POS) SYSTEM What Is a Point of Sale (POS) System?Ī point of sale transaction occurs between a merchant and a customer when a product or service is purchased, generally using a point of sale system to complete the transaction. Newer Near Field Communication (NFC) technology allows many terminals to accept payments directly from a cell phone or smartwatch through apps like Apple Pay or Google Pay. A merchant can swipe, dip, or key-enter transactions into the credit card terminal. This is the traditional method for accepting credit cards. PAYMENT TERMINAL What Is a Credit Card Payment Terminal? They are also responsible for paying the card brands and the issuing bank their share of the interchange fees. The sponsor bank is responsible for getting the funds to the merchant and ACH payments to the processor. Many processors also have their own gateway. This can be integrated into your current credit card payment solution with an Application Programming Interface (API). PAYMENT GATEWAY What Is a Payment Gateway?Ī payment gateway connects the payment technology (terminals, shopping carts, etc.) and the card processing networks. They will then calculate the interchange fees and provide the data to the merchant and the card brands. When a merchant “batches” or closes out for the day, the funds are moved from the issuing bank to the merchant’s bank. Businesses are connected to the processor through the hardware or software that they are using, and when they run a transaction, the information is routed to the appropriate network. PAYMENT PROCESSORS What is a Payment Processor?Ī payment processor helps shuttle all of the information to the card brands and banks. These companies work with governments to determine rules regarding card use, acceptance, and security, as well as determining the interchange rates. Visa®, MasterCard®, Discover® and American Express® fall into this group. This makes PNC the issuing bank, who receives most of the interchange fees charged by the card brands. As an example, if you have an account with PNC Bank, you most likely also received your credit or debit card from them. This is the bank that provides the customer with their credit card. Who Is Involved in Credit Card Processing? Payment technology helps process, verify and accept or decline credit card transactions through specialized hardware and software. Payment processing or credit card processing is in essence the automation of electronic payment transactions between the merchant and the customer.
#Cellular credit card terminal pdf#
Read a summary of our Credit Card Processing 101 summary below + download the complete PDF here. It offers valuable information on topics such as interchange fees, PCI compliance, and mobile payments. This payment processing guide provides a clear, concise, and complete look at how businesses accept and process payments.