With any new technology there are many things about its operation that are also new. Accepting credit cards isn’t anything complex. You have to get a merchant card processor and set up your equipment to get started. Accepting credit cards is beneficial even for very small businesses and it is nothing complicated; however, with new systems comes new lingo, and, although you don’t have to understand everything, being able to make sense of some jargon can be very helpful. To better understand how your money is being moved, it is important to have some knowledge of credit card payment related vocabulary as well. As the quantity of staff in small business is very limited–most of the time it is just a single person–more focus is given on setting up and running the system. That is good, but learning a little jargon is not that difficult either. If there are any issues in future, then understanding the lingo used in certified payment processing can save you some headaches.
Here is some key jargon used in credit card merchant services:
- Merchant Bank: This is the financial organization that provides services, such as a merchant account, in order to assist financial transactions for bank accounts. The Merchant Bank is not the same as an aggregator. Credit card processing services like PayPal create a merchant account for processing credit card processing but they are not financial organizations or banks.
- Processor: A payment processor is a third party or a middleman that handles the responsibilities of a merchant bank and facilitates credit card transactions and routes the information of credit card payments to the right merchant accounts and payment networks.
- Issuing bank: This is the financial organization that issues credit cards to consumers. Consumers can make purchase with these cards from your business with the help of certified payment processing which enables them to transfer the money from their bank into your account without involving the Banks directly.
- Card payment brand: These are the different brands of credit cards, such as MasterCard, American Express, Visa , Discover etc.