A Brief Overview of Card Processing

A merchant account is a credit extension provided by a financial institution that allows your business to accept credit card payments from customers. Whether your business is large and well established or small and just getting started, a merchant account may prove to be extremely beneficial. While this method of handling business transactions is not new, changes in credit card processing may help you attract and retain customers, and handle payments in an efficient and secure manner.

How Card Processing Began

When the first revolving charge cards were introduced in the late 1950s, cardholders could make instalment payments to repay their credit card balances. Unlike the electronic processing devices that are currently used, manual imprinting machines were used to process such payments. Many merchants retained these machines even when the telephone payment system debuted, and the manual imprinters often served as an excellent backup when problems occurred with electronic processing methods. Current merchant account processing may result in:

• Improved customer service
• Secure payment processing
• Streamlined procedures that benefit customers and merchants

Improvements in merchant services have made establishing a merchant account increasingly attractive to many business owners. Highly trafficked retail establishments are less likely to lose business due to a slow or cumbersome checkout process. Likewise, online transactions can be handled relatively quickly and securely with a merchant account in place.

Businesses that may benefit from a Merchant Account

Larger and more established department store retailers have long offered their own cards and accepted instalment payments. In exchange for paying a monthly charge, many customers have long been satisfied with being able to acquire desired items and pay for them over time. Technological advancements in general, however, have also made credit card processing advantageous for:

• Grocery stores
• Doctor’s offices
• Restaurants
• Independent vendors
• Mobile merchants
• Web-based businesses

Businesses as varied as midsized retail outlets, small retail establishments owned by families, franchises, and large corporate conglomerates may better serve customers by using a merchant account. Even fair and craft show vendors may securely accept credit card payments with a merchant account. As more and more consumers rely on paperless transactions, this sort of payment processing may be especially attractive for seller and buyer as well.

A Sampling of Merchant Account Processing Options

• Visa processing
• MasterCard processing
• American Express
• PayPal
• Google
• Yahoo

It is important to note that only a reputable business like this website may legitimately acquire a merchant account. Accordingly, misgivings about paying for merchandise or services electronically may be resolved by consulting agencies or reports dedicated to consumer protection and retail fraud. As merchant account services have evolved from relatively cumbersome manual processing, telephone and point of sale payment systems and to more sophisticated electronic methods, secure handling and storage of information must necessarily remain a priority.

Making the most of Merchant Services

The increasing use of electronic payment methods by so many consumers speaks to the apparent convenience and relative safety of such transactions. Accordingly, many people looking to improve their perceived legitimacy and ultimately increase their business revenue are more likely to take steps to expand their merchant services. Even if this is new territory for you, working with a reputable card processing company can lead to establishing a payment system that benefits your business as well as your customers.