Template:Processor
Credit Card Processor
Processor is responsible for receiving credit card information, passing it on to the banks and returning any necessary information regarding the credit card. Processors charge various fees for their services. Credit Card Processing Software acts as a broker by allowing to switch between processors to minimize the impact of the processor fees on the customer. Credit Card Processing Software uses internet or the attached modems to communicate to credit card processors over phone lines. Credit Card Processing Software allows a different Processor to be associated with each card type available. Also see Supported Processor List
Merchant Account
A merchant account is an account that is created so that a business or individual can accept credit cards, debit cards, gift cards and other forms of electronic payment. This is also widely known as payment processing.
Merchant Account is created by processors (such as TSYS, FDC, Global, etc). Merchant Accounts are bank independent. A given merchant account can connect to any bank account. Therefore, no matter which bank the merchant is using, they can change processors at will and they do not have to obtain their merchant account from their bank.
To process transactions, a merchant is charged a fee called a discount rate. The discount rate is a percentage of the dollar amount of the transaction. The discount rate varies, but is based on the business type, the method the transaction is taken (Swiped, Keyed, Internet), and other qualifying factors. An additional fee called a transaction fee, normally a flat fee, is also applied for each transaction that the merchant processes.
Debit Card
A debit card is a plastic card which provides an alternative payment method to cash when making purchases. Physically the card looks like a credit card, however its functionality is more similar to writing a check as the funds are withdrawn directly from the cardholder's bank account. The debit card is swiped through a card reader or inserted into a chip reader and the merchant usually enters the amount of the transaction before the customer enters their PIN. A Pin Pad is required for processing debit cards.
Check Card
Check Card is a Debit Card that can be used just like a credit card without entering a PIN. Check Card can also be used just like a Debit Card if a pin is entered.
