Converge Merchant Services |
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| Converge Merchant Services » Take Your business to the next level |
Converge Solutions specializes in credit card processing for your new or existing business. We offer a complete one step process for accepting credit card payments. We offer payment solutions for all types of businesses, including retail store front, mail-order, phone-order, trade shows, professionals, service industry, home-based and Internet.
If you want to accept credit cards, whether you are doing business online, over the phone or in person, you need a merchant account. If you're new to setting up a merchant account, a merchant account enables you to accept and process credit card transactions through handling the transfer of funds from your customer's credit card to your bank account. See How it Works for more details about merchant accounts. |
| Regardless of your business's size or industry, there are many benefits in having the ability to process credit card transactions. By accepting multiple forms of payment, you give your customers options and improve their experiences. You also introduce a new audience of customers to grow your business organically.In addition, card processing is an efficient, convenient payment solution that helps you improve cash flow by ensuring timely, automatic deposits to your account. Value-added services like gift card and prepaid card programs, can provide a new channel for generating profits and increasing your revenue. Check protection services can help you limit your risk from bad checks. |
| How card processing works |
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When a customer pays for products or services with a credit card, the card information is recorded—either by manual entry, a card imprinter, point-of-sale (POS) terminal, or virtual terminal—and then verified so that the merchant can receive payment for the transaction.
This process involves the following parties: |
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Cardholder: the owner of the card used to make a purchase |
Merchant: the business accepting credit card payments for products or services sold to the cardholder |
Acquirer: the financial institution or other organization that provides card processing services to the merchant |
Card association: a network such as VISA® or MasterCard® (and others) that acts as a gateway between the acquirer and issuer for authorizing and funding transactions |
Issuer: the financial institution or other organization that issued the credit card to the cardholder |
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The flow of information and money between these parties—always through the card associations—is known as the Interchange, and it consists of a few steps:
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- Authorization:
The cardholder pays for the purchase and the merchant submits the transaction to the acquirer. The acquirer verifies with the issuer—almost instantly—that the card number and transaction amount are both valid, and then processes the transaction for the cardholder.
- Batching:
After the transaction is authorized it is then stored in a batch, which the merchant sends to the acquirer later to receive payment (usually at the end of the day).
- Clearing and settlement:
The acquirer sends the transactions in the batch through the card association, which debits the issuers for payment and credits the acquirer. In effect, the issuers pay the acquirer for the transactions.
- Funding:
Once the acquirer has been paid, the merchant receives payment. The amount the merchant receives is equal to the transaction amount minus the discount rate, which is the fee the merchant pays the acquirer for processing the transaction. The amount paid minus the discount fee is transferred directly into the merchant’s savings or checking account, approximately 48-72 hours after processing.
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What you need to get started |
To get your business set up to process credit card transactions, there are a few things you'll need: |
- POS terminal, card processing PC software, or virtual terminal (if your business processes 10 or fewer transactions per week, all you need is a telephone)
- Merchant account – this is the contract you establish with the acquirer that provides your card processing service
- Business bank account to receive deposits for transaction payment
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If you want to process card transactions online, you will also need: |
- A Web site, hosting service, and secure server with certification
- Shopping cart software – virtual terminals provided by Merchant Card Processing from Bank of America work with all major shopping carts
- Online payment gateway – this is the channel for authorizing, processing, and settling transactions online. Authorize.net, the payment gateway we provide, offers 3 different service packages.
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