As a business owner, you need to be able to seamlessly and securely accept payments from your customers. Years ago, customers relied on payment methods such as cash or checks. Today, customers rely less on these methods and prefer to use credit cards to complete their transactions. In fact, the average American has four credit cards, making them the most commonly used method of payment.
At Velocity Merchant Services, we serve small business owners like you by providing complete merchant solutions. Regardless of your business type, we have electronic payment processing options that will allow you to accept your customers' preferred payment method.
Credit Card Payment Processing Glossary of Terms
We know that understanding and implementing an electronic payment processing option can feel overwhelming, especially with all of the different credit card processing industry terms. To make this process easier to understand, here are some of the most common credit card processing terms and definitions:
- Account number: This unique number is assigned to a cardholder from a financial institution to identify both the user and the type of financial transaction card.
- Arbitration: This procedure is used to remedy a dispute between two members and takes place outside the courts.
- Authorization: This is a request to charge a cardholder and is based on the available credit and the cardholder's account status. Permission can either be given or denied to accept the transaction.
- Banking business day: These are the days that a bank or depository financial institution is completing its usual financial operations and transactions.
- Batch: A batch is typically a collection of an entire day's credit card transactions.
- Cardholder: The person who possesses the card.
- Card issuer: Whoever issues the card to the cardholder. It can be a financial institution, retailer, bank, credit union or organization.
- Chargeback: When funds are taken back due to improper credit card transactions or disputed transactions.
- Chargeback period: The time frame in which the member can charge any sales back to the merchant.
- Chip card: A chip card, also known as an integrated circuit card, features an embedded computer chip for easier authentication.
- Clearing: When financial details are exchanged between the acquirer and issuer to reconcile a merchant's settlement position.
- Clearing house: The depository financial institutions (DFIs) that clear checks and electronic transactions. This is done by exchanging funds.
- Credit limit: The amount that a cardholder has to spend using their credit card.
- Disputes: This occurs whenever a charge or the validity of the cardholder's account is being questioned
- Electronic funds transfer: When a computer network is used to transmit money in a paperless form.
- Encryption: This is a term referring to the process of digitally scrambling numerical information. All Personal Identification Numbers (PINs) are encrypted to secure them.
- Merchant: This is either the retailer or other entity that agrees to the credit card. It is a person or business who accepts the payment for either a good or service.
- Merchant account: An account with a financial institution or another type of provider. It enables individuals and businesses to collect their payments by using debit and credit cards.
- Payment card settlement: A financial institution must first grant credit before the payment is deposited in the merchant account. This can also occur when the financial institution makes a debit on a customer's account.
- PIN: PINs, or Personal Identification Numbers, are used to authenticate credit card ownership and are used during card transactions.
- Transaction: This is an action between the cardholder and merchant resulting in financial activity in both of their accounts.
- Void: A void occurs when there is a reversal of any approved transaction. It can be thought of as canceling out a transaction or canceling one that has been authorized but not settled yet.
How VMS Can Help Your Business
Since 1998, Velocity Merchant Services has been helping small businesses grow through customizable and cost-effective solutions. We can help you navigate and select the best merchant account for your business. To help you grow your enterprise, we offer the following benefits:
- Customized process payments: Whatever system needs your business has, we will customize our process payments to best serve you. Our team is available to help with everything from an online payment gateway to credit card processing. Best of all, we ensure that the entire process is secure and convenient for all parties.
- Hardware and software payment equipment: Our team will equip your business with the hardware and software systems needed for effective payments. Regardless of whether you choose the Clover® Station, NFC/ Apple Pay® or another one of our software options, you will have a specialist and our customer support team by your side to assist you as you familiarize yourself with the technology. In addition, our hardware carries a lifetime warranty so you can feel confident in the equipment you use.
- Business growth opportunities: To proactively help your business grow, our team will work with you to set up and implement everything from a website to loyalty programs. We can even help you apply for up to $250,000 in capital, if needed.
Partner With VMS Today
Throughout our years in business, Velocity Merchant Services has completed over 51 million credit card transaction processes each year. Overall, this has translated into helping over 50,000 merchants grow their businesses. We have customizable solutions for businesses of all types, and our team is available 24/7 to answer any questions you have and offer our assistance.
If you are ready to experience improved money management with our secure electronic credit card processing systems, contact us today for a free consultation! We look forward to partnering with you and supporting your business growth.