Credit & Debit Card Payment Processing

In a 2018 study by TSYS, 70% of consumers prefer credit & debit payment processing for everyday purchases. This percentage grows every year with a 7% year-over-year growth for credit cards and 10% increase for debit cards.

It’s clear that consumers feel the most comfortable with these payment options, so it’s critical to offer simple and seamless acceptance of these channels.

Credit & Debit Card Payment Processing with BillingTree

How do I choose the best credit card and debit card processor?

Because Credit and Debit cards are so popular, some people think all credit card processors are the same. Nothing could be further from the truth. The fact is that there are very distinct differences between payment processors and choosing the right one can save time, headaches and hard dollars.

Credit & debit card payment processing have their unique requirements. 

As a business owner, you need to know the difference between debit and credit payment processing.  

Credit Card Processing 

Credit cards allow people to borrow money from a card issuer (Visa, MasterCard, Discover, or American Express), usually paying off the balance with monthly payments.

How Credit Card Payment Processing Works

When a customer makes a purchase, they slide or insert their card through an electronic terminal. That terminal reads the information imprinted on that card. That information is passed to a processor, which is then passed to the bank that issued the card. After the bank approves or denies the transaction, the authorization is sent back to the processor, who then passes it back to the terminal. It all comes full circle. There’s a lot goes on between the time you insert your card and the time it processes the transaction, even though it only takes a few seconds.

Debit Card Processing

Debit cards, on the other hand, are a way for people to spend their own money by withdrawing funds they had already deposited.

How Debit Card Processing Works

Debit cards are processed a little differently, but the front-end process looks the same. The customer swipes or inserts their debit card, and a terminal reads that information.

After verifying the correct formatting of the data and checking for fraud, the network sends that data to the bank that issued their debit card. The issuer confirms that enough funds are available in the account then tells the merchant if the transaction was approved or denied. This process usually takes a matter of minutes to be reflected in the customer’s bank account.

Takeaways

Although they look similar, Credit & Debit Card Payment Processing each have their unique protocols and requirements for security and fraud protection.

If you’re looking for a fast and secure way to process Credit & Debit Card Payments, contact us today or request a free demo below.