How Credit Card Processing Works for Small Businesses

U.S. consumers use credit cards for more than a quarter of all payments, according to the Federal Reserve Bank of San Francisco. So if swiping, dipping or tapping a card isn’t an option your business offers, you could be missing out on a significant chunk of sales revenue.

While using credit cards for purchases is a convenience many consumers have come to expect, the actual process for a business is complicated. It involves industry lingo that may be unfamiliar to some, the coordination of multiple participants and the acquisition of a card reading device.

Overview of credit card processing

Several moving parts are involved in processing a credit card transaction. On one side of the transaction, you have the customer and the bank that issued their credit card. On the other side, you have the merchant and the bank that will receive the payment. Details about the transaction travel between the two banks through a credit card network, and the payment processor helps make sure things…

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This article was written by Lisa Anthony and originally published on