Recently, Visa experienced an outage that hindered retailers from taking credit card payments. Cardholders suffered in long queues for everyday goods like groceries and petrol, and merchant operations were disrupted due to rejected Visa cards.
Soon after the hitches kicked in, the Bank of England alerted Visa. Businesses, large and small alike were not able to accept payment which leads to loss of revenue.
Though undervalued, the UK’s cashless group utilizes the credit card providers’ processors to link payment requests with bank approvals. It is important to realize that minus these flawless interfaces, credit cards are just plastic.
Merchants who connect into the local and global cashless network penetrate into a world of opportunity to initiate credit card transactions across the gamut of credit card companies.
A retailer who opts to work with credit cards should organize for an individual merchant account with their acquiring bank of choice. It is the acquiring banks that process daily credit card transactions (for the merchant) within a credit card union – i.e., they are part of a renowned credit card union. Visa, Discover, MasterCard, Diners Club, and AMEX, are Europe’s most popular.
Towards the end of each processing day, the associate acquiring banks processes one another’s transactions across a safe network run by the card union and the clearing system.
Merchants can obtain these accounts from traditional banks, e.g., HSBC and Barclays to new-age such as PaymentSense and WorldPay. In times gone by, many high street banks incorporated merchant services in merchant as well as business accounts.
Barclays’ Barclaycard merges merchant and business account services under one package. The banking institution also rents out the payment devices known as the PoS (point-of-sale) and allows merchants to accept cards.
Barclays is part of the Visa card association. Part of its job is to confirm with a buyer’s bank whether there are sufficient finances for a purchase.
How much you pay for a merchant account and the card processing fees depends on the time-span of the service contract together with the rental fee for Point of sale and transactions. In a nutshell, the integrated merchant account bill could include, service charges, transaction fees, processing fees, cash transfer fees, and rental fee for the POS.
However, adopting credit cards can also be a costly move. Businesses anticipating high volume transactions may pay in fees because some service providers take a percentage of the amount charged.
Other more sophisticated card processing models need an acquirer to take care of credit card payments. Famous online payment processors like Worldpay and PaymentSense.
WorldPay is a self-made UK number one paying processors offer credit card services to SMBs, large companies, and corporations. With the ability to process 400 card transactions every second, and reliable worldpay customer services, the company captures almost 45% of the UK’s total card transactions.
There are numerous other solutions other than the ones listed above. Find out more about credit card payments to learn your options.
Author Bio: Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of worldpay customer services has helped thousands of business owners save money and time.