An Insightful Escort to Credit Card Processing

The world cannot imagine to live without credit cards no matter how annoying they are as obligations. Consumers make every small and big purchase through their credit cards, and because it is important for them, it is more important for businesses. The commercial entities irrespective of their size and scale facilitate credit card processing for the comfort for the consume and to get more sale. However, some merchants face confusion due to their confusion about how credit card processing takes place.

This ignorance sometimes creates unnecessary dispute with the consumers in case of any technical issue. If you are a business owner, it is better that you get at least a basic understanding of how things work.

What is credit card processing?

It is the process to transfer customer’s credit card data for payment approval to transfer the money to the merchant’s account during a purchase.

Prime actors in the credit card processing

Multiple ends are included in the credit card processing. None of these can be missed if a merchant and a customer want to complete the payment process.

Cardholder – He is the consumer who initiates the payment after making a purchase of a product or service. In simple words, he is the buyer.
Merchant – The seller of the product/service is the merchant that ultimately receives the payment through the credit card processing.
Merchant bank – It is an acquiring bank that provides a merchant account to the business owner where the money received from the customer comes.
Issuing bank – It is the cardholder’s bank from where the funds get released for the payment and reaches to the merchant account.
Payment processor – It is a payment gateway that materializes the credit card processing while connecting the merchant , merchant account, card association , and the issuing bank.

How does credit card processing take place?

Credit card payment processing includes varied ends connected to customer , merchant and payment processing. Through a decided process the money transfers from one end to the other completing a legal and authenticated circle.

Here is how the process of credit card payment takes place.

CREDIT CARD PROCESSING

The above process is simple to understand and it is vital for the business owners to be clear about how things take place. One thing is sure, that for the best credit card processing you need to find a reliable payment processor that has specialised knowledge about your industry. eMerchant Pro is a renowned and established name in the world of payment processing. It not only makes the credit card processing simpler but also provides merchant accounts through its vast network of acquirers.

For what reasons an issuing bank can reject a payment?

There are not many reasons when an issuing bank rejects a payment. Most of the time, there is not even a reason why the bank rejected it. But there are some certain reasons that the banks mention when they deny a payment.

Wrong credit card number
Insufficient funds in the cardholder’s account
Frozen account status due to a financial issue
Card holder has not activated online payment option

Types of payment decline in credit card processing

The payment decline is of two types, soft decline and hard decline. The comparison below may help you understand the difference between the two. As a merchant you can work better to resolve the issue if you know about both the types.

Soft decline	Hard decline
When customer’s bank has authorised and approved the payment but it is rejected by the CyberSource. It happens due to a setting according to a business rule. What a merchant can do? The merchant can request for settlement while continuing the sale. If not this, the merchant can reject the sale through a request to reverse authorisation.	When customer’s bank has rejected the payment due to insufficient funds or due to a possibility of fraud. What a merchant can do? The merchant cannot proceed for the payment after a hard decline. The only option is to request a different payment method.

Conclusion

Credit card processing for small business or a big business is similar. However, the monthly volume is surely different for the two. Nowadays and the payment reaches to the merchant in a short time. The complete credit card payment takes a few seconds. With added security of 3D secure technology implemented by PCI-DSS make it even more convenient for the customers and merchants to do money transactions. eMerchantPro has all the arrangements to make your credit card processing simpler through customised and affordable processing solutions.