Getting To Know The Basics Of The Credit Card Payment Process
When people go outside their house, most of them do not bring money anymore inside their pockets. It may be possible that there will bring small bills in order to purchase small items but most of the time, they are bringing credit cards or debit cards with them. Because of the increasing use of credit cards, the credit card payment process has also increased.
In order for you to carry out the process in credit card payment, you must have an equipment to complete it. These equipment’s are the one that will be able to reach the information’s on the card when the customer runs it on the machine. The device will ten transfer the data to a terminal. The owner of the card will be deducted from his transaction as the terminal is send the data to the proper financial institution which is the authority in deducting the funds. The transaction can be done in seconds as the data transfer is very quick.
It is important for you to know that credit card payment process is not free to the store owner that makes the transaction possible. Once the funds have been deducted from the customer by the financial institution, it is the third party that will be able to get the fees from the merchant which is a portion of the whole transaction. The charging fee from one third party to the other one can differ. The 2-3% of the total amount that was deducted from the customer will automatically go to the third party who provided the service.
If ever the customer will use his card for a purchase, the merchant will not automatically get the money as compared to the once that paid outright cash. The transactions that were made by the merchants using the customer’s credit card will receive money from the bank that provided the credit cards once every month. Customers will be charged convenience fees as the merchants will have to wait a long time for them to get their money. Customer also will not have to worry as these fees are very low often ranging from 1-5 dollars.
Most of the stores will sometimes require customers to purchase a minimum amount before they allow any credit card transaction. Credit card transactions will have a corresponding fee from the financial institutions, that is why stores also have to charge it from their customers. The store will waive the charges if the customer will only purchase an item that is less than 5 dollars. Debit cards can be sued if the customer will purchase a minimum of 5 dollars on their purchase.
It is always required for credit card and debit card holder to have a personal pin on their cards. In order to prevent unauthorized use, every credit and debit card should have a personal pin.