What is merchant processing ?
Merchant processing, also known as payment processing, is the handling of electronic transactions between merchants (businesses) and customers. This typically involves the processing of credit and debit card transactions, but can also include other forms of electronic payments such as digital wallets, bank transfers, and other forms of online payments.
Merchant processing involves several steps, including authorization of the transaction, settlement of funds, and reconciliation of accounts. The process begins when a customer makes a purchase at a merchant's point-of-sale (POS) terminal or through an online store. The transaction is then sent to the merchant's payment processor, who routes the transaction to the customer's bank or credit card issuer for authorization.
Once the transaction is authorized, the funds are transferred from the customer's account to the merchant's account through the payment processor. The merchant can then access the funds after the transaction has been settled, which typically takes a few days. The payment processor deducts fees for its services, which may include interchange fees, processing fees, and other charges.
Merchant processing is an essential part of modern commerce, enabling businesses of all sizes to accept a wide range of electronic payment methods and expand their customer base. Feel free to reach out to us at GetPayment so we can help you in greater detail!