![]() ![]() The best mobile POS systems let you accept credit cards wherever your customers are. You'll need a mobile credit card reader that connects to your phone or tablet to accept mobile credit card payments. ![]() How to accept mobile credit card payments The best payment gateways are secure connections that transmit information about the transaction and your customer's credit card info to the banking network for approval or denial. If you don't use a PSP, you'll need to apply for both a payment gateway and a merchant service account with a traditional bank. Some even let you use their platform to create an online store with built-in credit card processing. Most PSPs, like Square and Stripe, integrate seamlessly with major e-commerce sites. To take credit card payments online, you'll either need to use a PSP (payment service provider) or a combination of a payment gateway and a merchant service account. How to accept credit card payments online Read on to learn how to accept credit cards online, in mobile situations, by phone, in person and without a merchant account. There are different ways of accepting credit cards from your customers depending on how and where they're making the payment. The interchange rate is the actual cost of processing the card, which varies by credit card type, whether the payment is completed online or in-person and the industry your business is in. Interchange plus: You pay the processor the interchange rate plus a set margin.Flat rates combine the network’s interchange fee (from Visa or Mastercard, for instance) and your payment processor’s markup into one single fee. Flat rate: Every merchant pays the same fixed fee per transaction type - in-person swipe, over the internet, or entered manually - which is most often a percentage of the purchase amount plus a set fee.This is offered by a relatively few amount of companies. Subscription-based: You pay a fixed monthly fee to the credit card processing company and then pay a low per-transaction fee to cover the amount the credit card networks and banks charge the processor.Payment processors have different ways of charging customers, but they always cover the actual cost of processing the card plus a margin so that the processor also makes a profit. Fees for online sales and manually entered credit cards are usually higher than the rate for in-person transactions. If approved, that status is sent back along the same path, going through the card association, merchant bank and then, finally, to the merchant.Įach of these financial institutions charges its own fees, and the processor ultimately passes these fees along to you. Transactions can be declined for several reasons, including past due payments, insufficient funds, or closed accounts. The issuing bank determines whether or not to approve the payment authorization, taking into account the card verification value (also called CVV or CVV2, it’s that three-digit security code on the back of the card), AVS validation (an address verification system), and the expiration date. That processor submits the request to the issuing bank through the card association. ![]() Once the payment request is originated, the merchant requests payment authorization from their payment processor. In the seconds between the initial swipe and receiving an approval or denial message, sensitive financial information is communicated between the reader, the network and the bank.
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