It is quite misleading for some people to get into the myths about Credit Card Processing. These myths create a misconception in the minds of the merchant about what to choose or not. Before moving ahead let first understand what Credit Card Processing is.
Credit Card Processing
Credit card processing allows the transaction to be accepted through credit cards. The credit card information captured by the merchant business is first transferred to the payment gateway and then to the acquiring bank which verifies whether the customer has the required payment in the account or not. If yes, then acquiring bank transfers the approval to the payment gateway which again transfers the request to credit card companies to debit the requested payment from the issuer credit card account. Thus, the entire transaction gets completed and the payment is transferred to the merchant account.
eMerchantPro is one of the renowned names when it comes to Credit Card Processing Services in USA. We are providing beneficial merchant account services irrespective of the low or high volume of the merchant so that they can process smooth and flexible transactions for their business.
Popular misconceptions of Credit Card Processing
There are various misconceptions or myths regarding credit card processing companies. Let us take a brief look at some of them.
Hard to keep the data safe
Any business that needs higher security standards needs to be PCI DSS compliant. This stands for “Payment Card Industry Data Security Standard”, PCI DSS standard says that any business that is upholding the customer’s sensitive information must comply with PCI DSS. A merchant unable to have compliance can withstand the charges and fines from the acquiring bank for non-compliance.
Expensive processing fee
Many things are running behind per transaction. Many parties are involved in making and accepting business transactions. These entities are a cardholder, Merchant, Merchant bank, payment processor, card association, Issuing Banks, Independent Sales Organization & Membership Service Providers. Hence these institutions charge for their role in the transaction process and these Charges are cumulatively known as credit card processing fees. Though few of the credit card processors are notorious and add extra cost to the bills, expecting that merchants will not think twice about it. So rather than just blindly accepting the terms from the credit card processing company, get in contact with the professional to ensure that they are charging authenticate charges. eMerchantPro has more transparent processing fee structure as compared to any other merchant account service provider.
Credit and Debit Card Fees Are Similar
Most of the payment processing companies charge more for the credit card fee as compared to the debit card. The charges may depend on various factors and risk is one of the factors. It is just that the processing payment for the debit card is low while it is high in case of credit card processing.
Payment Gateways hold onto the Clients Money
Most people have this misunderstanding that the money from the client holds on with the payment gateway. However, this is not true at all. The payment gateways have their role, it collects the payment information and stores it securely and then pass it on to the acquiring bank.
The acquiring bank in its turn passes the encrypted information to the issuing bank for authorization and approval. Once the request is approved then the request is traced back to the customer. The customer gets approval from the merchant for having a successful transaction. This is the simple process that goes through the payment gateway.
Payment Gateways provide Banking Solution
This is among the many misconceptions about the payment gateway. Though the bank has its role in processing the payment. While the processor is just the interface between the merchant and the bank. And in many cases, the payment gateway has its place under the acquiring bank and does its work accordingly.
Payment Gateways Take No Responsibilities for Customers’ and Merchant’s Private Data
Gateways do have a major role in protecting the sensitive information of the customer. They aim to protect the merchant from fraud activities or any other data prevention leaks. It is also responsible for the security standards of the merchants.
Lower processing rates are better
As far as lower pricing rates are concerned, don’t fall into the trap with the lower rate service provider. Lower rates should not be your determining factor at all since you may get bad customer services, longer waiting time for the funds processing. The other most important factor is that different companies offer different rates. Some provide the services at a flat rate irrespective of the transactions however others provide the services at discounted rates. Try to get into the entire picture before you settle on certain rates.
It’s impossible to switch providers due to the contract
It is also a myth that most people have about online payments. If the merchant gets into the contract with one of the service providers they may not switch in between. However, the merchant can switch to other gateway services. It may be possible on certain terms and conditions that some payment gateway wants to negotiate with each other to provide the merchant with the flexibility to switch to other gateway services. It may also be possible that other payment gateway providers may want to buy out your gateway’s merchants by providing lower rates, So Be Aware!!
All service providers are crooks
Merchant account service providers may try to take benefits from all the businesses. But certainly, not all the payment gateway service providers are crooks. Most of them are very professional and you can look up to them at the sites such as Business Bureau and Merchant Maverick to ensure that it is safe to collaborate with them.
Local Banks with good rates are better
It may happen that your local bank is providing you a low rate. But it is usually good to look for the best rates that you can get. If you are getting the best rate from your local bank then you must go for it.
The bigger the brand better the services
Not every bigger company will provide you the best rates. It may also be possible that smaller firms may provide you with the best offers. Reach out to the ones that consider you as a customer not another number in their list.
Credit cards are cost-prohibitive
If you do the analysis then you will get to know that it is necessarily not true. Including the credit card option in your business will enhance your business.
Credit cards are not harmful for the financial health
This is a worldwide fact that the global payment method of payment cards and especially credit cards are always upon a certain risk on the behalf of your consumer or the cardholder due to this particular misconception merchants usually tends to take credit card processing as damaging to their own business but this is false. Since all the factors of risk such as this can usually be handled by your payment service provider keeping you and your business out of reach.
Banks are the only service provider
Most banks provide payment gateway services for you but there are also payment gateway service providers who can provide you with the payment solution. It is up to you where you can get the best offer. Don’t hesitate to go for the private ones if they are providing you the best processor that suits your business requirements. Also, you can get more flexibility with the private institution as compared to the banks or financial institutions.
Payment Gateways and Banking Methods are similar
Banks are responsible for processing online transactions particularly for e-commerce sites, while the role of payment gateway is different from that of the bank. The payment gateway serves as the mediator while the bank is in charge of handling the payment.
Every business requires a payment method for accepting payments from customers. This includes small businesses, retailers, or any online business. Don’t get into these myths that stop you from taking your business to exponential heights. Although, we have seen all are not misconceptions and some are facts. Payment Gateways are complicated machines integrated solutions that manage the financial transactions and perform other important financial tasks. Hence you need to pick your option well before choosing the right payment solution for your business. Get along with expert advice for feasible processor services. eMerchantPro is providing the one-stop solution for the merchant who is dealing in High-risk businesses by providing them with the High-Risk Payment Gateway in the USA for allowing them to accept credit card payments.
