How Card Payments Work

How card payments work? Well before I joined the industry this was a mystery to me too!

Here I will explain in the simplest terms ‘how card payments work’. This will make the decision easier to accept card payments if you understand the process and why you are charged.

Call Richard on 07796242029 or email richard@rbmcs.co.uk to hook up card payments now.

So how do card payments work? Here we go, lets talk about it in 10 steps.
  1.  Customer approaches you with a payment card
  2.  You accept payment with a payment gateway of some description that identifies you with a merchant i.d. for example a chip & pin terminal.
  3. This gateway securely sends the details of the transaction and individuals card details to a merchant bank.
  4. The merchant bank recognizes the card, the individual customer and its own bank.
  5. It then process the transaction and adds a small amount of money to the transaction for doing the processing work which it will charge you.
  6. This money for goods and services is then sent to your bank account, job done, paid.
  7. The customer is charged for the goods or services, no more. You are charged the small amount of money the merchant bank added to the transaction for its trouble.
  8. At the end of the month you are charged by the merchant bank.  All of those small amounts that have amounted over all the payments on card you accepted that month.
  9. The merchant bank account does not need to be the same bank you bank with. In fact there can be no benefit from keeping it all in one place!
  10. Card processing rates and standing charges to merchant monthly account statements differ vastly so just like your electricity supplier, you should switch to save money whenever you can. Compare your statement by contacting us now.

The question, how card payments work can be complicated with lots of things added and other jargon dropped in to confuse you. At RBMCS we look to cut through all the fat, lean down your bill and make the world a more profitable place.

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