Tell me about Government, Corporate credit cards, and Foreign
Issued Credit Cards. Can I take them?
you will be able to process these cards on your existing terminal
or online software. A bankcard issued to companies for use by
company or government employees sometimes called a Purchasing
Card.. Purchasing Cards allow large companies and government
agencies to better track expenses. Processors charge a higher
fee for these types of cards because there is more liability
since the card user is not financially responsible for the card.
Purchasing Cards, Corporate Cards, and Foreign issued credit
cards are normally processed as Non-Qualified Transactions as
described earlier. You pay slightly higher for these transactions.
What about debit or check cards? I hear this is a good idea
if I have a retail store.
have done your homework. Yes, debit or check cards are just
like accepting a Visa or MasterCard as long as they have either
the Visa or the MasterCard logos. One mistake merchants make
is these cards are drawn against the customers’ checking
account and funds are actually verified when processed but a
lot of merchants treat these transactions like a credit card
sale rather than a debit transaction. Debit transactions are
much less expensive and the only difference to the customer
is that they must enter their PIN number on either a terminal
or external pin pad. For online merchants, debit cards can only
be processed as a credit card transaction. Technology has not
been developed that will allow a PIN number to be entered on
a web site so use Online Checks for customers who want to pay
from their checking account. The great thing about treating
these transactions as debit rather than credit is that the funds
are guaranteed if you receive an approval and are not subject
to Visa/MasterCard regulations which means these transactions
are final and cannot be chargebacked by the customer. It is
like writing a check but with no possibility of the check bouncing.
If you are, a retail merchant ALWAYS treats these transactions
as debit transactions. It saves you money and is final.
I keep hearing about electronic terminals, software and real
time processing software on the Internet. Can you explain these
terminal or online software is a vehicle to transmit information
to the processor regarding the information about the credit
card being processed but each are used for specific types of
businesses. There are three options available to merchants wishing
to accept credit cards and how they process sales. Your business
will fall into one of these categories. Lets look at the different
business types to help you identify which category best describes
your business. This will help you decide which is better, an
electronic terminal or software. There are really only four
types of businesses and each listed below has a short description.