The growth of consumerism and the applicability of credit cards do go hand in hand. As with any social change, a certain learning curve has applied with the acceptance and use of this form of payment. This can be on the part of both the purchaser and the business, and education and experience on either side has helped to keep markets and economies alive.
At National Processing, we have found that some of the basic questions that are posed about paying by credit card apply to merchants and customers. Understanding how transactions are handled builds trust, and allows for confidence to grow.
For merchants, this concern can come down to what type of account is being used to process the card payment. Some business will utilize networks that ensure security through different types of verification in order to spot fraud. This can be work with any type of credit or debit card, regardless of the backing bank, as the merchant account will have a separate support system.
For consumers, this can depend upon individual accounts and the manner in which the payment is processed. Different credit banks do apply their own checks and balances to counteract identity theft or suspicious use. Consumers can also verify that the merchant is using a secure system, and with online retailers, this will generally be displayed on the site.
Merchants may be charged a percentage fee based on the customer's purchase. This will again depend upon the type of account that is in place, and may be applied for a selection of services. A basic fee is used to handle processing the payment securely, and this is for the benefit of both the payer and the payee. It can be responsible for generating the necessary accounting records and ensuring accuracy. Larger fees may be in place as insurance in cases where fraud does occur, and this will protect the merchant from responsibility for costs.
Consumers may see fees on their accounts, depending on their backer. With debit transactions, this is usually a processing charge for having the transfer occur in real time. With actual credit accounts, there may not be a per charge fee, but there may be a monthly insurance that appears. This is protection against suspicious purchases, possible late payments on the account, and keeping credit intact.