Merchants Guide: Know better about Credit Card Processing Services

Merchants Guide: Know better about Credit Card Processing Services


There is no doubt that signing up with a credit card processing company is inevitable in today’s scenario. However, the question is, have you acquired enough knowledge about credit card processing? This interesting question will solve itself after reading this post.

Regardless of the nature of a new system, it is vital to understand the basic process before bringing it in action. Here you will find some common terminologies used in credit card processing that are important for both merchants and customers.


Terms Credit Card Processing

Charge Back

It is an important term from the merchant’s point of view. In simple words, Charge back is a feature that enables customer to ask a refund for their purchase within sixty days. This normally happens on a stolen card or an imposer misuses the card. However, merchants can avoid it by taking necessary precautions. Customers are liable to produce a valid id card while processing credit cards, which normally neutralize the issue. Always ask customer to sign the seller’s copy of payment slip after processing credit card as it holds legal value and help merchant in these rare scenarios.


BSC is the shortened form of Breach Security Coverage delivered by your Merchant account provider on data. Hackers succeeded in gaining access to vital credit card details in past and caused millions of loss to the financial system. Continuous reports of hacking attempts caused a major setback to credit card processing industry in the last decade. Meanwhile, it also gave birth to current security features that brought back the industry to full swing. Though hacking is impossible in present secure conditions, BSC covers merchants from this hardly possible vulnerability.


MOTO is the abbreviation for Mail order or Telephone order in credit card processing. This facility will come in handy if the transaction has to perform without the physical presence of a card. As credit cards processing happens over phone or mail, merchants who provide remote or distant sales could make use of this feature. Moreover, MOTO offers a secure environment for transactions.

O L F – The over limit fees

OLF depends on the merchant account plan you selected. Over limit fees is a charge, which requires the merchant to pay a fee once the credit card processing limit crosses its default plan value in a given month. It is important to consider the monthly sales statistics, while selecting a credit card processing plan for merchant services. In case of a sudden enhancement in sales, almost all merchant account providers have upgrades to make you comfortable through the dynamic market situations.

MM – Monthly Minimum Charges

MM is the monthly minimum charge imposed to Merchant if a minimum monthly transaction has not processed as per the default plan. Consulting with your merchant account provider and changing your plan to a suitable one would solve the issue.

It is not mandatory to learn terminologies for processing credit card in merchant services. Merchant account providers would help you know all the basics on sign up but understanding some common terms closely would benefit you in future.


Credit Card Processing  Conclusion

Always look for an honest provide of  merchant services/credit card processing.




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