CREDIT CARD SYSTEM
A credit card system is a type of retail transaction settlement and credit system, named after the small plastic card issued to users of the system. A credit card is different from a debit card in that the credit card issuer loans the consumer money rather than having the money removed from an account. Most credit cards are the same shape and size, as specified by the ISO 7810 standard.
CREDIT CARD SYSTEM:
A credit card user is issued the card after approval from a provider (often a general bank, but sometimes from a captive bank created to issue a particular brand of credit card, such as American Express Centurion Bank), in which they will be able to make purchases from merchants supporting that credit card up to a prenegotiated credit limit. When a purchase is made, the credit card user indicates their consent to pay, usually by signing a receipt with a record of the card details and indicating the amount to be paid. More recently, electronic verification systems have allowed merchants (using a strip of magnetized material on the card holding information in a similar manner to magnetic tape or a floppy disk) to verify that the card is valid and the credit card customer has sufficient credit to cover the purchase in a few seconds, allowing the verification to happen at time of purchase. Some services can be paid for over the telephone by credit card merely by quoting the number embossed onto the card (the credit card number), and they can be used in a similar manner to pay for purchases from online vendors.
Each month, the credit card user is sent a statement indicating the purchases undertaken with the card, and the total amount owing. The cardholder must then pay a minimum proportion of the bill by a due date, and may choose to pay more or indeed pay the entire amount Typically, credit card issuers will waive interest charges if the balance is paid in full each month, which allows the credit card to serve as a form of revolving credit.
CREDIT CARD PROCESSING. There are several factors to consider when setting up a credit card processing system for a new retail or internet business. The first step is to set up a merchant account via a merchant account service. Such services act as intermediaries between you and the credit card companies. If you are a retail business, you will need to purchase a processing terminal through which credit cards will be physically swiped. Such terminals can cost anywhere from $100-$1000, and can be purchased via merchant account services or else independently. We at paynetsystems provide these terminals and other equipments depending upon specific business needs. Finally, you will need to be sure that your POS (Point of Sale) system is properly set up to interact with the credit card terminal. User manuals or else your merchant account service can usually help with this.
TRANSACTION RATES. Keep in mind that each time a purchase is made; there is a cost to you, the retailer. Rates for internet transactions are generally in the 2-3% range, while brick and morter transactions carry a small per purchase fee and rates in the 1-2% range. If you chose to accept debit cards, this will save both you and the consumer, as these rates are lower still. .But we at www.paynetsystems.com have a transaction fee which is unbeatable
· Retail Merchant Accounts Transaction Fee $.24
· Mail / Phone Order & Home Based Business Transaction Fee $0.25
· Wireless fess Transaction Fee $0.24
· eCommerce & Internet Merchant Accounts Transaction Fee $0.25
MERCHANT ACCOUNTS: A merchant account is a bank account established by a merchant to receive the proceeds of credit card purchases. By establishing a merchant account, the merchant bank agrees to pay the merchant for valid credit card purchases in exchange for the right to collect on the debt owed by the consumer. We at www.paynetsystems.com offer all the above type of merchant accounts depending upon specific business needs
Source: http://www.bambooweb.com/articles/c/r/Credit_card.html
CREDIT CARD SYSTEM:
A credit card user is issued the card after approval from a provider (often a general bank, but sometimes from a captive bank created to issue a particular brand of credit card, such as American Express Centurion Bank), in which they will be able to make purchases from merchants supporting that credit card up to a prenegotiated credit limit. When a purchase is made, the credit card user indicates their consent to pay, usually by signing a receipt with a record of the card details and indicating the amount to be paid. More recently, electronic verification systems have allowed merchants (using a strip of magnetized material on the card holding information in a similar manner to magnetic tape or a floppy disk) to verify that the card is valid and the credit card customer has sufficient credit to cover the purchase in a few seconds, allowing the verification to happen at time of purchase. Some services can be paid for over the telephone by credit card merely by quoting the number embossed onto the card (the credit card number), and they can be used in a similar manner to pay for purchases from online vendors.
Each month, the credit card user is sent a statement indicating the purchases undertaken with the card, and the total amount owing. The cardholder must then pay a minimum proportion of the bill by a due date, and may choose to pay more or indeed pay the entire amount Typically, credit card issuers will waive interest charges if the balance is paid in full each month, which allows the credit card to serve as a form of revolving credit.
CREDIT CARD PROCESSING. There are several factors to consider when setting up a credit card processing system for a new retail or internet business. The first step is to set up a merchant account via a merchant account service. Such services act as intermediaries between you and the credit card companies. If you are a retail business, you will need to purchase a processing terminal through which credit cards will be physically swiped. Such terminals can cost anywhere from $100-$1000, and can be purchased via merchant account services or else independently. We at paynetsystems provide these terminals and other equipments depending upon specific business needs. Finally, you will need to be sure that your POS (Point of Sale) system is properly set up to interact with the credit card terminal. User manuals or else your merchant account service can usually help with this.
TRANSACTION RATES. Keep in mind that each time a purchase is made; there is a cost to you, the retailer. Rates for internet transactions are generally in the 2-3% range, while brick and morter transactions carry a small per purchase fee and rates in the 1-2% range. If you chose to accept debit cards, this will save both you and the consumer, as these rates are lower still. .But we at www.paynetsystems.com have a transaction fee which is unbeatable
· Retail Merchant Accounts Transaction Fee $.24
· Mail / Phone Order & Home Based Business Transaction Fee $0.25
· Wireless fess Transaction Fee $0.24
· eCommerce & Internet Merchant Accounts Transaction Fee $0.25
MERCHANT ACCOUNTS: A merchant account is a bank account established by a merchant to receive the proceeds of credit card purchases. By establishing a merchant account, the merchant bank agrees to pay the merchant for valid credit card purchases in exchange for the right to collect on the debt owed by the consumer. We at www.paynetsystems.com offer all the above type of merchant accounts depending upon specific business needs
Source: http://www.bambooweb.com/articles/c/r/Credit_card.html
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