Credit Card Payment Processing: Simple Steps

Accepting credit card payment is relatively quick and simple for business. Integrating business channels with credit card processing companies offer a plethora of benefits. However, businesses need to figure out the best ways to accept credit cards and choose a credible payment processor. It is indeed an overwhelming experience for businesses just starting their journey!

Steps to accept credit card processing

For both online and offline transaction processes, the steps of credit card processing involve:

  • Customers swipe the card or enter the credit card number in the payment processor.
  • The payment processor scans the details of the card and initiates the transaction. They also check the credit limit and detect potential fraud.
  • The bank accepts the transaction and processes the amount to the merchant account with the specific transaction details.
  • It was the generic transaction process for businesses. However, the process changes with in-store and online mode.

In-store credit card processing

In order to accept credit card payments, businesses need to integrate point-of-sale or POS systems. It enables the credit card terminal process and includes potential software and hardware for a processing card transaction. Some efficient POS systems like Square and Clover process the terminal card processor to accept the transaction.

In other cases, customers are often required to press their personal identification number to authorize the transaction. In that case, an onscreen receipt is printed from the terminal after the completion of the transaction.

Online payment

For online businesses, payment processing is the most critical part of the business. In that case, businesses need to integrate with credit card processing companies. Also, businesses should have an integrated payment service provider, for example, Shopify, PayPal, or Stripe. Then the PSP system should be connected with an online storefront. The process is quite simple with an efficient website developer. These website developers, along with a potential marketplace, help to strengthen the online payment process. Also, secure the security of the customers.

On the other hand, businesses can also adopt standalone services to accept online payment. Smart people in business often include simple links into the business account. Customers make payments from a third-party website with clickable links like ‘pay now,’ customers make payments from a third-party website. However, there is a certain limitation. Hence, for seamless credit card payment processing, the former process is more transparent and requires no manual work.

Difference between credit card and debit card transaction

Even though for businesses, credit and debit card transactions seem similar, credit card processing companies use different technology in the backend. Using a safe credit card network bank initiates the transaction process. From the customers’ end, a debit card transaction pulls the money immediately, but a credit card transaction doesn’t.

Similarly, from the businesses’ end, payment looks different. Credit card processing should have a payment processor to transfer the money into the account. Fees for these transactions are also different.


Those who are new to the business should have adequate knowledge before introducing a safe payment process. Moreover, for small businesses, the challenges of payment integration are many! Hence, they should take the assistance of a credible payment processor for their business.

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