How Long Does Payment Processing Take?

Setting up an account with us will take from 24 to 48 hours, starting from the time that we have acquired all your documentation. When payments are processed by us, the funds will become available the following business day. This includes every transaction including those from American Express. There are three steps involved with credit card processing, and understanding these steps will be helpful.

Three Steps for Credit Card Processing

In order to complete a credit card transaction, the merchant will first need to collect the credit card and enter its information. This information will then be transferred to the service provider who will be able to process it. This can be done in multiple ways. It can be swiped through a terminal, the information can be entered and submitted through an online form, or the merchant can write down the credit card info manually.

The second step is to receive an authorization. Once the credit card data has been entered and transferred, the service provider will check to see if the credit card account is authentic, and has sufficient funds to cover the payment. If it does, the processor will authorize it.

A processing specialist will be responsible for handling the electronic flow of credit. They will do this by working with systems that offer interfaces where data can be entered. The third and final step is to place the funds into a bank account. After the credit card is charged, the processor will temporarily place the funds in a special repository called a merchant account. The funds will remain in this account for about two business days, after which it will automatically be placed in your checking account.

A merchant account is important, as credit card payments cannot be processed without them. These accounts can be opened through your bank or other institutions. The rates for these accounts may vary, so it is best to compare the different options that are available. The base amount that you pay for every transaction will be determined by the merchant account you use.

Fees Charged by Credit Card Companies

Credit card companies charge a fee for processing your payments, and the amount will depend on numerous factors. Many charge a fee for each transaction, while others charge a fee monthly. Some charge both. If your business has a sales volume which is low, it may be advantageous to seek an arrangement where you’re charged a percentage of each transaction, while avoiding a monthly fee. If your business has a high volume of sales, the merchant account will typically charge a single monthly fee with an additional fee per transaction which is lower than average.

If you operate an e-commerce business, it is important to be sure your merchant account can process them. Some e-commerce merchants choose to select their payment vendors first, after which they ask them for recommendations as to which merchant account they should use. This ensures that the account will be compatible with online credit card systems. There are many ways to process credit card payments, and it is best to choose one which is suitable for your business needs.