| Credit Card Merchant Processors are devices that | | | | Fourth, the merchant verifies the information and on |
| enable a merchant to process the payment request | | | | successful verification, immediately credits the |
| for a transaction with a customer. These devices | | | | transaction amount to the merchant account. The |
| facilitate the process of the merchant bank paying the | | | | entire activity usually is accomplished in a matter of |
| merchant the amount that was transacted between | | | | seconds. |
| the merchant and the customer. | | | | What is the typical structure of Credit Card Merchant |
| When a customer makes a purchase at a merchant | | | | Processors? These devices typically contain a |
| outlet and presents a credit card for making the | | | | modem, printer, keypad, magnetic card reader and |
| payment, it is swiped at a terminal (also known as a | | | | power supply. |
| Point-of-Sale terminal), the information is sent and | | | | The modem facilitates the sending of the data to the |
| verified at the merchant bank which in turn verifies and | | | | merchant bank; the keypad is used to key in the card |
| pays the amount of transaction to the merchant, if | | | | information (such as Card Verification Value and the |
| verified. | | | | Card Expiry Date) and the transaction amount; the |
| There are a number of card merchant processors | | | | printer prints out a slip that gives the transaction details |
| today, available in the market and they are being | | | | such as the amount of transaction and the date. |
| widely used by merchants all over the world. | | | | These devices have transformed the way business is |
| Let us take a look at the process of how a Merchant | | | | conducted. |
| Processor works. | | | | The proliferation of the credit card industry has meant |
| First, the customer selects the item to purchase and | | | | that the customers are not required to carry a lot of |
| presents the credit card to the merchant. | | | | cash anymore. The customers also do not have to |
| Second, the merchant swipes the credit at the terminal | | | | pay for the transaction right now and can pay them |
| (also known as a Point-of-Sale terminal). This starts | | | | later. |
| the process of reading and verifying the information in | | | | From the card merchant perspective, they are not |
| the credit card by the merchant bank. | | | | required to count the money at the counter and store |
| Third, depending on the type of credit card merchant | | | | a lot of cash which at times may be risky. The entire |
| processor, there may be a polling service that collects | | | | process has enabled them to electronically process |
| the card information (such as Card Verification Value | | | | the amount and the amount is quickly credited in to |
| and the Card Expiry Date) and sends them to the | | | | their account. |
| merchant bank for verification. | | | | |