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Article: Does accepting credit cards affect the bottom line? What is credit card processing? In simple words, "credit card processing is the act of converting raw data into money as a form of payment.".(Finance)
- Article from:
- Franchising World
- Article date:
- November 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 International Franchise Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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When it comes to credit card processing, it is important to keep in mind that credit card transaction and processing is a business, a business that you pay for. The costs to you for accepting credit cards are minimal considering the benefits.
Interchange is the money the franchise pays for accepting credit cards. What is Interchange? In simple words it is "The clearing and settlement system where raw data is exchanged between the acquirer and the issuing bank." Even though a franchise may be quoted one rate, it is the how they are set up and interchange that actually determines the rate a franchise will pay. For a franchise to receive the best rote possible it ...