Intro to Credit Card Payment
Actual money is not a necessity for people to carry around in our current society. Often people will carry a few dollars, but most purchases are made with plastic credit cards or debit cards. Credit cards and debit cards have become very popular because they are fast and easy to use. Checks were the only way to gain access to your bank accounts on the go in past years. Since credit cards and debit cards are so popular, businesses need to have a way to process them.
Credit card and debit card payment processing requires specific equipment. The equipment will be able to read the card when swiped through it. Then the data from the credit or debit card is sent to the specific financial establishment, and it then removes the cash from the cardholders account. In a couple of seconds the process is done, and the buyer is done with the purchase.
The business that accepts credit card or debit card payment does not get it for free. Paying the business that supplies the connection from company to the financial institution is done through this extra charge. Typically a merchant will pay only one or two percent of the actual purchase.
Cash purchases get money to actual seller much quicker than credit cards do. A monthly payment is typical for companies to pay the actual business. Credit card purchases sometimes come with convenience fees to be paid to the store. These charges are usually extremely low, varying between one to five dollars.
A minimum purchase amount is typical for business to put in place for cardholders to actually use their cards. Banks will charge a store for a card charge, and this is a reason stores put in place a minimum amount rule. If the customer spends at least five dollars the banks wave the extra charge. This is the reason why stores require a minimum of five dollars to use a card.
Sometimes a cardholder will be required to use a pin number to get access to the account on a credit card or debit card. The pin numbers help avoid unauthorized people from gaining access to a cardholders accounts, and the pin number is given when a credit card or debit card is acquired. A pin number should never be told to anyone, or it will defeat the purpose. When buying something, a numbered pad at the cash register will be where you can enter your pin number to access your accounts. The cashier should never need to know your pin number.
Get To Know The Author: George Lidge is a family man and powerful industry voice. He enjoys keeping up on industry trends, learning & writing, and watching old movies. Check out this resource for additional information: apply for credit card You can find more information on the author’s site.
