Customers have increasingly more and more options for shopping everyday. Having a merchant account gives businesses the option to allow customers to purchase goods using either a credit card or debit. This can be very important for a number of customers when it comes to making a purchase. Businesses can set up a retail merchant account by applying for and being approved from a merchant acquiring bank to process credit card transactions. As customers have increasing turned to credit and debit cards to pay for purchases, the need for merchants to have a merchant account continues to increase.
Most retail locations use a credit card terminal (also known as a credit card machine) that is located on their counter top. Larger retailer generally have their credit card processing tied into their Point of Sale system (known as a POS system) since they usually help management track inventory and other sales figures. Both types of retail merchant account systems run transactions through the same process. After a customer’s credit card has been swiped, card account information is sent from the machine for authorization through the credit card processor to the customers bank. At the customers bank the amount of funds requested for authorization is requested. Within a couple seconds, the customers bank will respond with either an approval or decline on the transaction and the credit card machine will print it out. That evening the merchant will have to batch out, or send for final approval, all of the transactions for the day. This batch will allow for the merchant to make changes, such as add tips, to any of the authorizations received earlier in the day. Once the batch has been received by the credit card processor, final requests are sent to the customers bank for fulfillment. Funds usually arrive into the merchants checking account within 48 hours.
Allied Payments is available to help your company easily apply and setup with a low cost retail merchant account. Most merchants coming inquiring about rates will see a decrease in their credit card processing fees once using our competitive rates. Contact our office today and see how easy it is for retail merchants to partner with an affordable merchant services company.