Retail Credit Card Services

When making a purchase at a store or business that accepts credit or debit cards for payment, there is a procedure that occurs. The credit or debit card is slid through a type of card reader or terminal where the information contained in the magnetic strip is read. The information contained in the magnetic strip is about a person's credit account, the location of lender providing the credit or debit card, the account holder's information name, date of birth, available funds in the account, and current status of the account. The terminal connects to the business' warehouse processor for authorization. The warehouse processor in turn contacts the card holder's bank and confirms whether or not the card is valid and the current available balance. The bank then sends back information to the business' warehouse processor; the information refers to an approval number or a decline message. If the transaction is approved then a receipt will be printed requiring the card holder's signature. The current terminals mainly use phone lines to communicate however there is a movement towards using the speedier internet. Using the internet will increase the speed and surety of transactions and has less down time than using phone lines. At the end of a business day the store or business will settle the credit terminal which is the final step in processing a credit or debit transaction. Primarily the settlement will occur at the credit processor's location - a warehouse. The settlement will happen at a specified time of day on a daily basis. At the time of the settlement, the transacted funds are transferred from the lender holding the purchaser's credit account into the store or businesses checking account. The complete processing of a retail credit transaction takes no more than two to three business days. Currently there are several online companies that offer retail credit card services. The services not only relate to transaction processing but also offer the following services: cash management tools, business promotional tools, reasonable pricing, instant access to funds, online processing, website gateway setup for internet purchases, and will ensure PCI (payment card industry) compliance.