What Is a Credit Card Processor?
A credit card processor is a company or financial institution that facilitates credit card transactions between the merchant and the customer. In today's digital age, transactions can occur anywhere - in person, online, over the phone, or by mail. The processor acts as a middleman, transmitting transaction data between the merchant, the customer, and the various entities involved in the payment process, such as the card network, the issuing bank, and the acquiring bank. The credit card processor also ensures the transaction is secure, verifies the card's validity, and approves or declines the payment. The processor charges a fee to the merchant for their services, typically a percentage of the transaction amount, and may also charge additional fees for specific services or transactions.
What to Look for When Picking a Credit Card Processing Service for Your Business:
Transparent Pricing
Payment Security
A Variety of Payment Types
Customer Support
Credit Card Processor Quick Facts
When it comes to online shopping and travel purchases, credit cards are the preferred payment method for many consumers. According to a survey, 48% of respondents prefer using credit cards for online shopping, while 47% prefer it for online travel purchases, over options like debit cards and PayPal.
