Quick guide to credit card processing

In order to incorporate credit card machine UAE in your business and sales we believe there are some dynamics which you must learn and understand so that it becomes better and easier for you to run the system. For starters, you must learn and understand which parties are involved in this whole process so that you can get through it with clear mind.

• First and foremost, you need to create and start a Dubai merchant account if you will be accepting payments as being the owner of the business.
• Next comes up the card holder who is going to make the purchases and whose card you are going to ring up.
• Now you need to take care of and understand the different card association governing bodies such as VISA, Master or many other types which are applicable in your area or country. Remember, they are not banks but rather the governing bodies of card processors.
• Acquiring bank is the merchant’s aka business owner’s account where all the payments will be deposited. This is the payment accepting bank.
• Issuing bank is the one who will pay on behalf of the customer or cardholder who will be responsible on paying the amount back timely.

Now that we have learned and understood about the people who are involved in payment gateway, let’s see how the process takes place:

• Customer buys what they are there to buy for.
• Credit card is rung through a credit card machine which contacts the credit card company for the validation of the card.
• If the card is authorized, payment is preceded to next step which is…
• The credit card holder company sends the payment to merchant’s account on behalf of the card holder.

After being through this, merchant would receive a transcript or statement from the credit card company to share the processes and payments of the specified month. This helps in keeping the track of the transactions. But this transcript has a fee which needs to be paid by the merchant every month for using their services.

The fee may vary and depend upon services to services and card holder’s banks. There are too many people involved in the system so you better understand all of them before hand and then proceed with it.