It's easy to get overwhelmed or lost when navigating the world of top credit card processors and credit card processing. Why? Credit card processing can be a complex system with an even more complicated set of terms.  Visit us at: https://webpays.com/credit-card-processing.html

1. Learn Some Terms Used In Credit Card Processing
It's easy to get overwhelmed or lost when navigating the world of top credit card processors
and credit card processing. Why? Credit card processing can be a complex system with an
even more complicated set of terms. In this ultimate guide to credit card processing
terminology, we'll be reading about some of the most common terms used by top credit card
processors in the world of credit card processing.
Ultimate Guide to Credit Card Processing Terminology
• Acquiring bank/acquirer: It refers to a financial institution or bank that is entrusted
with the responsibility of processing credit card transactions for business owners.
Merchant accounts are maintained by acquiring banks that issue interchange fees.
• Batch Processing: It refers to the merchant processing numerous transactions at the
same time to save cost and human resources over time by processing and automating
multiple transactions as a single group.
• Card association/card network: They license and manage payment cards and two of
the most popular names include Visa and Mastercard. Their logos are present either
on the back or front of your card.
• Card-not-present transaction (CNP): It refers to a transaction where the credit card is
not physically present. This includes buying experiences over the phone or online.
• Cardholder: The owner of a credit or debit card - your customers. They may purchase
goods or services in-store or online.
• Chargeback: This occurs when the customer or issuing bank disputes a transaction.
Then, it is sent back via the interchange to the acquiring bank (or merchant account)
to be resolved.

2. • Credit card payment services: They allow businesses to accept credit card payments
from customers. Typically, these services involve the use of a virtual terminal or credit
card terminal to process card payments in person or online.
• Digital payment services: They refer to electronic payment systems that let businesses
receive and make payments via digital means instead of checks or cash. Popular
examples include Google Pay, Apple Pay, and PayPal.
• Interchange Fees: They refer to fees that are charged for every credit or debit card
transaction that you make. Interchange fees are paid by the acquiring bank (also
known as merchant bank or acquirer) to the issuing bank (or card issuer). These fees
vary depending on the card used and are determined by card associations.
• Issuing bank/card issuer: It refers to a financial institution or bank that issues credit
cards on behalf of the card association. Popular examples include Visa and Mastercard.
They are licensed by their respective card associations and bear financial responsibility
for all transactions made by the cardholder. All in all, they act as an intermediary
between the cardholder (your customer) and the card association.
• Merchant Account: It is opened by a business owner via a merchant bank (also
referred to as an acquirer or acquiring bank) to accept credit cards, debit cards, or ACH
(Automated clearing house) transactions.
• Merchant Processing: It refers to the complete process of accepting and processing
payment transactions made with debit or credit cards.
• Online payment processing: It refers to the complete process of accepting digital
payments made via an online platform, such as a website or mobile app. Businesses
can accept digital payments from customers using numerous payment methods,
including but not limited to digital wallets, bank transfers, and debit or credit cards.
• Point-of-sale (POS): It refers to the location where payments for goods or services are
made by customers. Colloquially known as the cash register or cash, it can also be used
to describe the software or hardware used to process transactions.
• POS terminal: It refers to an electronic handheld payment device that is used to
process credit and debit card transactions.
• Payment gateway: It refers to an essential technology for business owners to securely
and seamlessly process digital payments (made through digital wallets, debit cards,
credit cards, etc.). The payment gateway facilitates secure communication of the
customer's payment information, using state-of-the-art encryption, to the acquiring
bank for payment acceptance.
• PCI DSS Compliance: Formed in 2004, the Payment Card Industry Data Security
Standard (PCI DSS) refers to an information security standard that is utilized by major
card brands to handle credit cards. It is aimed to reduce payment card fraud by
increasing security controls around cardholder data. It is administered by the PCI SSC
(Payment Card Industry Security Standards Council).
• Payment processor: In the world of credit card processing, it refers to a third-party
organization that processes debit or credit card transactions. Top credit card
processors such as WebPays generally provide a wide range of merchant solutions
such as customer support, security features, payment gateways, and others.

3. • Processor Costs: Processor Costs are usually non-negotiable by the merchant and they
may or may not include markup by the payments company to cover costs generated
by the merchant such as PCI compliance fees, technology fees, support fees, and more.
We hope that this ultimate guide to credit card processing terminology by WebPays helped
you gain a clear and complete understanding about top credit card processors and credit card
processing.