Guest post Provided by Charge.com Payment Solutions, Inc. Charge.com is a company that provides low cost and flexible options for internet merchant account services. Visit the Charge.com website for more information.

Credit card processing online can be described as a long borrowing chain. Understanding how credit card processing works will aide you in making smarter business decisions about who to partner up with for an internet merchant account.
Knowing how the credit card processing procedure operates will help you make important business decisions on what kind of credit card processing company you wish to work with. Of course, the length of time the company has been in operation, the type of contracts involved, the cost of services, the quality of customer support, and the security measures taken are all important factors when deciding which type of credit card services you want to partner with.
Business goals can be categorized as three broad ideas. All business objectives should work towards these business goals. The three goals in operating your business should be to make money, to conserve spending, and to keep customers satisfied. Knowing how the credit card process works will certainly aid you do that. You will know what questions to ask yourself and the consultants when reviewing a credit card processing company. You will have a better idea on what tactics you need to utilize in order to increase profits and decrease spending.
Credit card processing online can be akin to an elongated borrowing chain. It can appear complicated at first, but with a little explanation it should make more sense. The acquirer, or more familiarly known as the credit card processing company, relieves the merchant from worrying about collecting money from the cardholder if they are buying on credit. You as the merchant simply do not have time to hunt down every single cardholder who does not honor their contract. Acquirers simply hold banks and cardholders accountable to their word when they sign their receipts agreeing to pay the promised amount. The money shows up in your merchant account, and the acquirer takes care of the rest.
The procedure looks something like this. Firstly, the credit card holder will initiate the procedure by giving you his or her credit card information. The merchant, that’s you, uses their credit card machine, software application or online gateway provided by their internet merchant account to send the cardholder’s info to their bank or credit union. The acquirer, that’s us, directs the details via the Visa or MasterCard network, and then transmits the cardholder’s info from their bank to you for negotiation. The info after that is rerouted to your account. The Automated Clearing House (ACH) places the cardholder’s payment in to your account, and debits your account for any kind of handling charges. The financial institution you have your account with is accountable for paying the acquirer for the amount requested. In turn, the cardholder is accountable for paying back their bank.