Contact Sales (855) 615-7481

Get FREE Quote

What a Merchant Should Expect When Processing Credit Cards

A credit card is one of the most important financial instruments used by customers across the globe. If you are a merchant selling a product via bricks and mortar or online stores, you will need to allow customers to make purchases using a credit card. There are not many resources available to the merchants to understand what to expect when processing credit card transactions.

Parties involved in a credit card processing transaction

It is important to understand the different parties involved in a credit card processing transaction. As a merchant, you may not be interacting with all of these parties. However, knowing the players involved in the process will help you in the long run.

Merchant: The merchant sells some product to its customers. The merchant may be an intermediary that sells someone else’s products. A typical merchant will accept dozens of transactions from multiple customers.

Acquirer: An acquirer is a fancy term used to describe the merchant’s bank. This is the financial institution that allows the merchant to setup and process credit card payments.

Association: An association is an authority such as Visa or MasterCard. These organizations usually allow the issuers to co-brand the credit card using their trademarks. They get a fixed percentage of every transaction made by a cardholder. They also act as an arbitrator to settle disputes among cardholders, issuers, merchants and acquirers. These institutions also offer the network to authorize and accept the transactions.

Cardholder: A cardholder is the customer who swipes his or her credit card to purchase products or services from a merchant.

Issuer: This is another fancy term used to describe the customer’s bank. This is the bank that issued the credit card to the customer.

What to Expect if you are a Merchant

If you are a merchant, then you will need to understand the following steps:

• Setup a merchant account with a bank (Acquirer), which is a member of an association such as Visa or Mastercard.
• Decide the credit card brands that you will allow your customers to make purchases.
• Decide the payment channels, such as point of sales, web sites, or mobile.
• Review and agree to the transaction fees charged by the Acquirer.
• Complete the merchant account setup with the Acquirer and start accepting credit card payments.


Type Of Account


What Exactly is a Contactless Payment?

The modern credit card industry and credit card processing began in the 1950s, and the first credit cards...

How Smart Chips Will Make Electronic Transactions More Secure

For the typical business person who runs across fraudulent transactions involving credit cards, credit card processing with smart...

What To Do With All of Your Company’s Receipts

As the electronic age has started to take over more businesses, much of the information that used to...

© 2015 All rights reserved. Privacy Policy
CREDITCARDPROCESSING.COM, LLC is a registered ISO of Wells Fargo Bank, N.A. Walnut Creek, CA
American Express® may require separate approval.

*Promotion contingent upon's receipt of written competing offer(s). Further terms and conditions may apply.

**Certain restrictions may apply. Promotional offers brought to you by Call (855) 615-7481 for details.