The act of processing payments between a customer and a merchant is referred to as merchant processing. This usually involves credit or debit card processing, or any other method of payment transactions, to be processed through the merchant’s processing terminal to complete the purchase of goods and services.
Merchant processing explained
An individual or company that sells goods and provides services to customers is called a merchant. Having a merchant processing terminal is integral in accepting and processing payments from customers. Merchant processing is basically the process of payments by a merchant, whether they are a retail store, online store, travel agent or similar.
Merchant processing involves the gathering of sales information from the merchant, followed by the charge of payment from the customer’s bank purchasing the goods or services, ending in the payment of them to the merchant selling them. This process is relatively fast and is a secure method of processing payments as it is generally protected by a range of anti-fraud and security systems.
The main form of merchant processing is that of credit card processing. This type of merchant processing can only be achieved where the merchant applies for a merchant account specifically designed for the acceptance of online credit card transactions. Credit card processing enables the merchant to offer their goods and services online and to a vast target market internationally.
In order to begin processing payments, merchants are required to set up a merchant account. To successfully obtain a merchant account it is advised to seek the assistance of a professional consultancy firm to ensure that the process is completed in a professional and timely manner.