Businesses Require Credit/ Debit Card Terminal Suppliers For Payment Processing
Debit/Credit card payment processing is one of the fastest and secure means of payment acceptance. The traditional method of accepting payments like cash is becoming rare. Businesses are adopting new trends in the payment industry. Businesses are now accepting payments via debit/credit cards. Accepting payments through cards are now vital for businesses. Purchase transactions for product and services in Latin America via credit, debit, and prepaid cards transaction reached 26.93 billion. Canada generated 13.23 billion purchase transactions for products and services via credit/debit cards. With the increase in demand for a card transaction, merchants are looking for one of the best Credit, Debit Card Terminal Suppliers. But when searching for a debit card terminal, there exist many myths in the merchant’s mind. In this article, we will clear some common misconceptions with terminal suppliers. We will also discuss the latest technology EMV compliant NFC enabled terminal. Stay Tuned!
Three Misconception When Searching Debit Card Terminal
- The Only Bank Give Debit Card Terminal: It is a misconception between merchants that banks are the only Debit Card Terminal Suppliers. Merchants think that credit/debit card processing is the bank’s job. Many small businesses when they required a debit card terminal, they go to the bank and opt the payment solution. Banks also outright lie to merchants that only they are the only provider. They take advantage of small merchants by charging high fees and rates. The other solution besides banks is the merchant service providers. The providers and acquiring banks together helps businesses with a payment solution. The merchant service provider is also known as the payment processor. The processors dedicatedly provide merchant services and offer low fees and rates compared to banks.
- Credit/Debit Card Processing Fees Are The Same: Your card terminal can process credit/debit and even prepaid card transactions. But do all the card processing fees are the same? Do credit card processing fees same as debit card processing? This is the most common myth in merchants that the processing fees are the same for every card. But this is not the case; the charges are different. Usually, credit card processing fees are higher compared to debit cards. And international card processing also has different rates. The processing fees are not always the same for every merchant. Every processor may have slightly different rates. The rates depend upon several factors, including ‘risk’. The processor may ask you for higher fees and rates if your business is risk-oriented. Businesses with high average monthly volume and chargebacks are considered as risky businesses. Thus they have to pay higher fees for card processing.
- Business Can’t Switch Debit Card Terminal Supplier: Do businesses can switch the debit card terminal supplier? Yes, it is the merchant’s right to choose any merchant service provider who can better fulfil their business needs. If you are already contracted with a bank or processor and think to change your solution provider, you just need to terminate the contract with your existing merchant service provider. But ensure that there are no termination fees associated with your debit card terminal.
How Do Credit/Debit Card Terminals Work?
Everything is done automatically, and you don’t need to worry much. But still, you should be familiar with the basics of processing. The three primary ways to process debit cards are Tap, Insert or Swipe. Usually, a merchant needs to swipe if it is a traditional magnetic stripe card. If it is a chip card or based on newer EMV technology, merchants need to insert or dip the card into the terminal. And if the terminal is NFC enabled, a merchant can process it just by tapping the card over it. The card information transmits to the terminal wirelessly.
Let’s dig deep and understand how a transaction gets authorized and settled in your business bank account? Once the card is inserted or swiped into the terminal, the card information flows to your payment processor through the internet. The processor then forwards the information to the appropriate card network based on the type of card. The information from the card network goes to the card-issuing bank. The issuing bank checks and approves the transaction based on the fund availability in the cardholder account.
As soon as the issuing bank verifies and approves the transaction, the fund flows from the cardholder account to the merchant account. The whole process completes within seconds. The funds received in the merchant account is transferred to the merchant’s business bank account after every 3-5 days. The settlement time is not fixed and vary from processor to processor.
NFC Enabled Wireless Debit Card Terminal
With the pace in technology, a new emerging technology comes known as NFC or Near Feild Communication. The NFC is based on radio frequency and helps to communicate wirelessly. The credit/debit card terminals are now coming with NFC features which allow processing transactions just by tapping. The card information flows into the terminal wirelessly. This is one of the most substantial inventions in the payment industry and adopted by the merchants. If you are businesses looking for debit card terminal suppliers, we can help you. We help you to provide the latest and EMV compliant with NFC enabled terminals.
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