Top Questions About Credit Card Processing

check markUpdated for April 2019

A payment gateway uses an e-commerce application to authorize credit card payments. Payment gateways can allow transactions through a payment portal such as through a website or mobile device. Once a customer submits their payment information, the gateway will send transaction details as encrypted data to the card association or issuing bank to authorize the transaction amount.

In order to grow, small businesses will need secure and affordable credit card processing services to handle transactions. Instead of purchasing bulky, complicated payment terminals, small businesses can easily process sales with lightweight, inexpensive devices. Companies like Leaders Merchant Services, Cayan, and Square offer scalable solutions so that small businesses can accept payments and manage sales at affordable rates.

Credit card processing services allow businesses to accept payments in-store, via mobile, or online. Businesses can purchase a range of equipment used for accepting credit cards. With in-store and mobile devices, merchants can accept credit cards in person by swiping a card through reading equipment. Businesses can also accept online credit card payments through e-commerce platforms and virtual terminals.

Different credit card processing services have their own rates and fees. Typically, credit card processing companies have two types of pricing: tiered-pricing and interchange pricing. With tiered pricing, the credit card processing service will charge different fee levels for each transaction. Typically fees break down credit card according to different rates for credit and debit cards. With interchange pricing, merchants pay a flat fee plus a small fee for each transaction. \

The cheapest option really depends on the business. Businesses should consider certain factors such as the size of the business, whether or not you operate in a brick-and-mortar establishment or sell online, etc. Using our side by side comparison, you can view the different pricing and features of top credit card processing solutions to find the best rates for your business.

Whether a well-established business or a newly opened retailer, merchants can choose from many different credit card processing companies to suit their needs and budget. Leaders Merchant Services makes a great choice and comes with a free credit card terminal that accepts many payment options with inexpensive transaction fees. Cayan also stands out as a quality credit card processing service that allows month to month contracts and no setup fees. You can read more about these companies and others in our credit card processing reviews.