Retail Credit Card Processing

If you are doing business face to face, accepting credit cards has become a necessity. Whether you have a store, restaurant or kiosk, Merchant Warehouse can help your business set up a merchant account and accept credit cards for less money than you ever thought possible.

You will find some helpful information in the links to the left that will help you get your business started with retail credit card processing. As always, if you have further questions about merchant services, feel free to call us at the number above.

How Retail Credit Card Processing Works

retail credit card processingThe model below describes how retail credit card processing works in a typical storefront environment.

  1. The merchant slides the customer's card through the credit card terminal and enters the sale amount. The terminal then connects to Merchant Warehouse’s processor for authorization.

  2. The processor passes that information onto the bank that issued the credit card where the bank checks to see if the card is valid and see if the charge amount is available on the card.
  3. The issuing bank sends back an approval number or a decline message to Merchant Warehouse’s processor.
  4. The information is passed back to the credit card terminal which prints a receipt for the customer to sign if the card is approved. It takes approximately 12-15 seconds to complete steps 1-4 on a credit card machine using a phone line. The newer internet enabled machines can cut this time to just a few seconds.
  5. At the end of the day the merchant must "settle" or "batch out" their terminal which will begin the final process of the transaction. In most cases Merchant Warehouse can automatically settle the transactions at a specified time each day. Once the settlement process is initiated the funds are transferred from the card issuing bank and are electronically deposits them into the merchant's checking account. It typically takes no more than two business days from the time of the original transaction for the funds to reach the merchant's checking account.

For more information on how retail credit card processing works call us at the number above or request a merchant account online.


Retail Credit Card Processing Tips

Retail credit card processing is the most straight-forward of all merchant account scenarios. Follow the tips below and you’ll be sure to avoid any of the possible pitfalls of setting up a retail credit card processing account.

  • Give yourself enough time. Most retail credit card processing accounts can be set up in a day or two, but it does sometimes take longer. It’s a good idea to start thinking about setting up a merchant account a few weeks before you plan on using it.
  • Use credit card processing experts for your retail credit card processing needs. Banks, superstores and other companies who sell, but do not specialize in, merchant accounts, can never be as competitive and up-to-date with the current trends and technologies as specialists like Merchant Warehouse.
  • Understand all of your fees. When you get a quote for a retail credit card processing some fees may seem a foreign to you. Take the time to go through your application and be certain to ask questions about anything you don’t understand. A good credit card processing company will patiently and competently answer all your questions.
  • Give some thought to your average ticket and projected monthly credit card volume. Every retail credit card processing company should ask you to estimate your average sale and monthly processing volume in order to get you the most appropriate account. If you estimate too low or too high you may find yourself with hassles down the road. Most good sales reps will have plenty of experience helping to estimate volumes and average tickets.
  • A contract or cancellation fee will almost always come back to bite you. As a retail business owner you should find it fairly easy to get a retail credit card processing account. It is no coincidence that companies who require these types of deals are often the ones who provide the most unreliable service. Beware of sales people that claim that "even though you have a fee in your contract, we never charge it."

If you have further questions feel free to call us at the number at the top of the screen or request a merchant account online.


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