Credit Card Processing FAQ
The most frequently asked questions about processing credit cards (also called “credit card processing faq” in this article) are available for you to get a better understanding of our process. We want you to ask questions so that you feel safe that your information is secure, that our company is reliable and that we understand how valuable your time is.
Clickable Credit Card Processing FAQ
Below are the frequently asked questions (FAQs) compiled to assist in answering the most common and important questions regarding our online credit card processing services. If your business has not yet begun to accept credit cards, please read through the FAQs below to see if the question has already been answered before contacting us.
If your question/answer is not included, please don’t hesitate to contact us.
– Increase sales: In general, your customers can and will spend more with a credit card than with cash or checks.
– Increase credibility: Consumers recognize that a business that accepts credit cards is a legitimate business, one in whom the credit card associations have “endorsed” by allowing them to participate in the credit card system.
– Better customer service: Accepting a credit card is easy and fast, usually more efficient than virtually any other type of payment acceptance.
With Orbit Card Services payment services, you can afford this additional credibility and increased sales. There is also the fact that we do not charge a minimum fee, nor do we charge you anything when you do not process transactions in a month.
Orbit Card Services uses the latest version of Secure Socket Layer (SSL) system that requires that credit card data be transmitted from your (or your ISP’s) secure server in encrypted form. This ensures that no one can intercept the transaction and obtain sensitive information.
However, there are many other precautions that you are required to take, according to Visa, MasterCard and other card associations. The premier source for this information is Visa’s information security site.
We automatically open a new merchant account for each new customer at one of our corresponding European banks.
In general, the first transaction takes place as soon as the card is submitted, allowing the merchant to quickly secure the funds for the transaction. The second phase takes place later, and is usually done in batches at the end of the business day. Settlements are done in batches because some processors limit the number of settlements that you can do during a certain period, and because it’s easier and more economical to void a transaction before funds are transferred, than to credit a cardholder account after the fact.
If you have ever checked your bank statement to find that there is a separate total for what you have and what is available, this means that a charge has been placed on your account that has not been settled yet.
A customer provides their credit card information to a merchant. With payment service providers such as Orbit Card Services , credit card information can be submitted in a number of ways, i.e. the customer types their card information on a website payment form which automatically continues the process. Or he can provide his card information over the phone or send a filled form over mail, in which case merchant manually puts this transaction into process later using a Virtual Terminal.
A merchant automatically or manually submits the credit card information to the payment service provider’s gateway. When the merchant submits their information to a gateway, then the gateway will in turn submit the cardholder’s information to a processor for approval.
The processor runs a check on the card, and will respond with an approval or rejection for the transaction to the merchant or the gateway (who will pass that information back to the merchant). The amount of funds requested will be held on the cardholder’s account, but will not be transferred out yet.
The merchant notifies the customer of the success or failure of the transaction. If the transaction is successful, then the merchant will ship products/provide services to the customer.
At a later time, usually at the end of the day or week, the merchant (or if the merchant is using a gateway, then the merchant’s gateway) will settle the transactions it has performed that day. By communicating again with the processor, the funds that were charged earlier are then transferred for the cardholders’ accounts to the merchant’s account.
This is the end of the credit card processing faq section. What are you waiting for? Get your card right now!
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