How does credit card processing work?

When a purchase is made the merchant swipes the card. The information goes to a gateway processor, which either accepts or rejects the transaction. If it is accepted, the transaction is held until the end of the business day. The merchant then reenters the transaction via the gateway processor, the data is logged, and the debt is transferred to the account. The use of an ATM for cash advance is a similar process.

If you are selling to consumers, merchant services will allow you to expand your customer base and provide a more convenient method of payment than cash or checks. And if you are interested in selling over the internet, accepting credit card processing is a must. Accepting credit cards allows funds to be transferred to your bank account in less than a week. This can be a welcome relief for businesses that experience a tight cash flow.