What is a Credit Card Payment Processor?

A customer slipping their card into a pos system to go to the payment processor

Payments are the lifeblood of your business. It drives your growth, pays your employees, and most importantly, pays for the roof over your head. As a business owner, you must understand how the payment processing system works and how the payment processor is always on your side. That’s why we created this blog post, to answer any and all questions you may have about what we do.

First Direct Financial is one of the nation’s top payment processors because of our strong dedication to our clients’ needs and comprehensive services. When you partner with us you’re not just getting our payment services, you’re building a worthwhile partnership. Read our blog post below to learn more about what we do and how we can help you reach a new level of success.

What is a Payment Processor?

A payment processing company is a firm that manages your business’s credit card transaction process, acting as the middleman between you and your bank. We essentially communicate the information from your customer’s credit card to their bank and yours. If they have enough funds, the transaction will be approved; otherwise, we stop it from going through. 

There are several fees that payment processors charge for their services, such as:

  • Start-up fees
  • Transaction fees
  • Chargeback fees
  • Termination fees
  • Lease charges for sales equipment

However, what differentiates First Direct Financial from other processors is how we do not charge start-up, application, or termination fees. Additionally, we do not lease equipment, we sell them at the most cost-effective rates. This is just one of the many benefits you get when you partner with us!

How Does Payment Processing Work?

Most people think the payment system is a confusing environment, but it’s actually relatively simple. We’ve broken it down for you:

  1. When a customer uses their debit or credit card to purchase your goods/services, they submit their cardholder details
  2. Then, the merchant will transfer the financial information to the payment gateway
  3. Which then transfer to the payment processor that you partner with
  4. We transfer that information to the card network (Visa, Mastercard, etc.)
  5. They will then transfer the information to the customer’s bank to check to see if there are enough funds to complete the transaction
  6. Once your payment processor receives a response from the card network, we inform you and the customer of the response
  7. Finally, the funds are deposited by the customer’s bank into your merchant account, where they sit for an agreed period before they can be transferred to your business’s bank account

The Benefits of Partnering with a Payment Processor

When you partner with a payment processor, you experience a multitude of benefits. Probably the most apparent being that you’re able to accept credit card and debit payments. In today’s technological world, customers expect convenience in every step of the shopping process. When you don’t accept credit or debit payments, you’re making it more inconvenient for your customers, which doesn’t help retain their attention towards your business. A payment processor will give you the tools and resources you need to begin accepting these forms of payment.

Another benefit is our knack for integrating payments with your own systems. There are so many different systems out there that are essential for your business efficiency. As your payment processing partner, we work to integrate your payments with your business workflows like accounting, billing, customer relationship management (CRM), and much more.

Lastly, another benefit we provide is flexibility. Payment options are seemingly always evolving. When you partner with us we keep you in the loop on the rapid changes occurring in the payment marketplace. We work directly with you at every stage of your business growth to ensure you continue to find success.

First Direct Financial is Your Payment Processor

When you partner with First Direct Financial, you’re not just getting state-of-the-art merchant services, you’re getting a partner. Your complete satisfaction is our primary goal and we assure you we can get you the lowest possible rate with the best quality of service. Contact us today and learn how First Direct Financial can help you with your mobile payment processing needs.