Credit cards are all over the habitation. Previously, a few selected businesses accepted cards as payment options. Now, practically all businesses accept credit payments. How did this modification come about? What is making credit cards such a popular payment option? The answer to these questions is reasonable processing fees. Credit transactions constantly include some risk. Any company that plays a part in the credit chain will charge for its facilities. As card processor facilitates card payments for a business, it charges a processing fee for its service.
Beginning of credit card processors
Encompassing credit to customers is an age-old policy to guarantee more sales. United States saw the first credit cards in first twentieth century, with oil companies and hotels being the pioneer card issuers. Processing and assembly of the bills was approved out by the businesses in-house. Then, banks created to offer credit cards and took over the disordered work of processing card transactions. Businesses were relieved from having to extend credit from their own funds. The job of processing and collecting bills was relocated to banks.
Achievement of early credit card processors
As banks took on the duty of processing card transactions, many businesses instigated to accept credit and debit cards as payment choices. Visa and MasterCard seemed on the act offering actual credit processing services and taking the boring work out of the hands of businesses. Credit card processing business succeeded and so did the card processing companies.
Entrance of the Internet
The internet has altered the market scene totally. Big players no longer control the card processing market. The internet has helped the entry of small players into this domain by providing fast and cheap transfer of information.
Lowering cost of hardware and software has made it conceivable for small companies to practice electronic payments efficiently, and at much lower costs than banks and titans like Visa and MasterCard. The cost of online payment gateways has also compacted extremely and many businesses have taken their products online over ecommerce applications.
Sensible processing fee and good quality service
A good processing fee should not be at the cost of low quality facilities. Card processors deal many services such as setting up merchant accounts, connecting point-of-sale terminals for processing cards, supporting ecommerce applications, using safe technology to evade fraud, and more.
Rita Rajpurohit is the writer of this article; she is co-associated with Radiant pay and Radiantpay.global. Writes for Credit card Processing, Payment processing, online merchant account, payment gateway and electronic check processing, Ach processing.