Taking the Mystery out of Credit Card Processing
With Marlene Waltz, SVP of Sales + Marketing
Credit card processing is complex and costly. Simplifying the process and thoughtfully building yours can provide new opportunities for your business.
Since it’s Olympic season, let’s look at sports and the desire to have the best team playing for you to explain credit card processing. For example, let’s use a relay race. Payment processing is like a relay race where the baton is passed through several runners, all trying to achieve one goal: to get you paid safely, securely, quickly, and affordably. And you need the right partners working together to get you to the finish line.
Now, that does not always mean partnering with the most expensive or well-known company, especially offering one-size fits all processing rates, or showing an attractive processing percentage, while downplaying pricey per transaction fees. Point being, just choosing the best player for each part of the run does not guarantee victory. A trusted team player will do what you need, with a customized price that fits your business, and care for you when you need assistance. A reliable team on your side means you can spend more time thinking about how to run your business.
The (Processing) Race:
First, lets breakdown who our runners are in credit card processing:
- Runner #1 – Merchant/POS Device
- Runner #2 – Payment Gateway
- Runner #3 – Payment Acquirer/Processor is
- Runner #4 – Issuing Bank
Let The Race Begin!
The whistle is blown and the race begins = The payment data is presented by the customer by swiping, dipping, tapping their card.
Transmit Card Data
The first runner beings to sprint with the baton = The merchant’s POS device transmits the card data over a secure network to the payment gateway.
The Payment Gateway
The first runner hands off the baton with the second runner = The secure payment gateway validates and tokenizes the card data, and securely transmits it to the payment processor.
Funds Are Verified
The baton is handed off to the third runner in the exchange zone = The processor forwards the secured and tokenized card data to the issuing bank (the cardholder’s bank) and verifies funds are available for the transaction.
Cross The Finish Line!
The final exchange between the third and fourth runner, the last runner sprints to the finish line, baton in hand = The issuing bank approves the transaction, sends the data back down the line, and the transaction is complete. Success!
Olympic runners train for years for this race, perfecting every move. Drilling down what method to use in the baton exchange, who runs first, second, third, and fourth, which lets them know what side of the lane to run closer to, etc. Similarly, the right players in credit card processing streamline the process so transactions are securely completed in just seconds.
Inefficiencies can hinder your business from its revenue potential. This is why choosing the right partner is important. Not only does the right partner get you the best rate, but they also enhance your customers’ experiences, make day-to-day operations seamless, and ensure your data stays out of the hands of bad actors. This in turn secures your business integrity and customers’ trust in you.
Handing your transaction to the wrong partner can be as scary as passing the baton to an unprepared teammate in a relay race. And just like on a winning relay team, in credit card processing, every exchange needs to be flawless. This is the bottom line; payment services should have your back 24 hours a day, 365 days a year. My hopes are that this blog has equipped you with knowledge to focus on curating an airtight payment system, leading to happier vendors and a flourishing business. To learn more about this topic, I invite you to read our blog on How To Lower Processing Fees.
If you build your company with full awareness of what you need to operate successfully, the sky is the limit. One of the reasons I love working at Apriva and that our customers like working with us too, is we make sure you are getting the best deal for you, with the best possible customer service and care, with the highest level of security possible. Chat with me or one of our wonderful reps today about how Apriva can help you reach your business goals and streamline your credit card processing.
To Learn More, Contact us Today!
Thank you for reading about this complex and exciting topic! If you have questions, want to learn more, or even want 1:1 advice from an Apriva payment expert on your unique business model, contact us today! We’re always happy to help.
