PAYMENT
PROCESSING 101
A MERCHANT’S GUIDE TO ALL THINGS PAYMENTS
payfirma.com
Payment Processing 101
TABLE OF CONTENTS
Chapter 01: The Payment Landscape 04
Chapter 02: Payment Processing Breakdown 09
Chapter 03: Showdown: Merchant Account Providers vs. Aggregators 18
Chapter 04: Payment Processing Fees Demystified 24
Chapter 05: Security & Fraud 29
Chapter 06: Omni-channel Magic 33
Chapter 07: How to Find Your Payment Processing Soul Mate 42
Chapter 08: The Future of Payments 46
Conclusion 48
Glossary 50
2
Payment Processing 101
INTRODUCTION
Few things in life are free. Merchants sell goods and services and in
exchange, consumers provide payments; this has been the system
in place since cattle was the currency of choice. While the basic
foundation of financial exchange remains the same, the payment
world has evolved significantly. Payment processing refers to the
automated processing of electronic payment transactions between
merchants and consumers.
To survive and thrive business owners must continuously adapt,
but the ever-evolving landscape of the payment industry can seem
complex and confusing. Payment Processing 101 provides you with
a comprehensive overview of everything you need to know about
payment processing.
This eBook guides you through the oft-complex terrain that is the
payment industry, exploring the way the landscape is changing,
the details that facilitate payment processing, and how payment
processing can help grow your business.
3
Payment Processing 101
01
THE PAYMENTS LANDSCAPE
A.K.A HOW YOUR CUSTOMERS WANT TO PAY
4
Payment Processing 101
CASH AND CHECKS ARE DECREASING
We live in the age of speed, convenience, and minimalism; increasingly fewer people are using cash
and checks. A recent report found that only 11% of consumers used cash in a day, compared to 27%
the previous year, and more than 29% hadn’t used cash in a week or more. One major contributing
factor leading to the decline of cash is the increase of online shopping; eMarketer projects that online
payments as a percentage of overall global retail sales is expected to increase from 7.3% this year to
12.4% in 2019.
Checks are antiquated and outdated; the use of checks has dropped even more dramatically than
cash. Not only are fewer consumers using checks, but fewer merchants are accepting them due to
high operational costs, additional paperwork, and NSF (non-sufficient funds) checks. Checks were used
in more than $40 billion transactions in 2000 but fell to less than $20 billion in 2012. A modest 3% of
consumers surveyed said their preferred way to pay was via check, and the majority of those were older
consumers. The annual rate of decline in check transactions from 2009-2012 was 9.2%, compared to an
annual growth of credit card transactions at 7.6% in the same years.
On average, the global In comparison, the
preference for cards is: preference for cash is:
54 %
39 %
CREDIT & DEBIT CARDS ARE INCREASING
Cash was once king; but in recent years, the traditional paper payment has taken a back seat.
Consumer choice is leaning towards electronic over paper payments due to convenience and speed
- a shift driven by the onslaught of mobile payments and increased popularity of online shopping.
On average, the global preference for cards (credit, debit, and prepaid) is 54%, compared to 39% for
cash. Nowadays, there are enticing incentives for a consumer to sign up for a credit card: travel points,
rewards, cash back, exclusive offers, and the list goes on. Since credit cards are accepted at a majority of
stores worldwide, consumer convenience is another reason for the increased popularity. At the end of
2013, there were over 8 billion credit, debit, and prepaid cards in circulation. Accepting credit cards is
no longer a perk; it’s a necessity.
5
Payment Processing 101
MOBILE WALLETS ARE ON
THE MOVE
Where mobile apps were once a novelty, now
“there’s an app for that”. The proliferation
“THIS MOBILE
of mobile apps in modern culture is almost
excessive (each of the Kardashians has their
WALLET
own). Nevertheless, it adequately describes ENTHUSIASM
the shift that is occurring: mobile apps are
everywhere we turn. Today’s consumers are WE’RE
spending over 85% of their time on their
smartphones using mobile apps. What that EXPERIENCING
means for the payments industry is that mobile
wallets are gaining, and will continue to gain in
HAS LED
popularity.
ANALYSTS TO
In the minimalist mentality of less is more, PREDICT THAT
mobile wallets have become increasingly
prevalent. Smartphones and other devices BY 2019,
act like a contactless wallet; users can add
credit cards to mobile wallets such as Apple MOBILE
PAYMENT
Pay, Samsung Pay, Android Pay, and Google
Wallet to replace them with a virtual card
and pay with a simple tap, via NFC (near-field
communication) technology. Mobile wallets
TRANSACTIONS
will only continue to grow in ubiquity with
technology giant Apple joining the game. Of
WILL EXCEED
consumers who currently do not use mobile $800 BILLION.”
wallets, 62% expect to use the technology
within the next year. The proliferation of NFC
and the advancements of technology mean Business Insider
that any device can be turned into a secure The Mobile Payments Report 2015
form of payment: Apple Watch even lets you
pay with a simple tap of your wrist.
6
Payment Processing 101
BENEFITS OF ACCEPTING CREDIT CARDS
IMPROVED CASH FLOW With credit card payments, you don’t waste time waiting for paper-
based invoices, tracking down NSF checks, and waiting for checks
to clear the banks (which can take up to 90 days). When you accept
credit cards, funds are generally deposited within 48 hours.
REDUCED COSTS Billing and labour overhead, such as paper, printer, and postage
use, is reduced when you abolish hard copy invoices. On average,
to process a check requires a high operational cost of $7.36. A Visa
report revealed that for each $1000 transaction, the cost of dealing
with NSF checks is $20 for small businesses and $24 for medium/
large businesses.
IMPROVED PRODUCTIVITY Processing cash and checks not only requires more money but also
takes more time. Time wasted with trips to the bank, managing
accounts receivables, and chasing checks. When you accept credit
cards, the process is automated.
INCREASED SALES Credit cards offer the freedom to move businesses anywhere the
OPPORTUNITIES customer goes. Owners are no longer confined to store hours or
a brick-and-mortar location. You can accept payments anywhere,
anytime with a mobile card reader and/or online store.
7
Payment Processing 101
INCREASED REVENUE Customers are more inclined to spend larger amounts and buy
more impulsively with credit cards. Not only is it faster, but the
psychological pain of paying is lessened because swiping a credit
card is more abstract than handing over cash. Industry research
indicates that credit cards increase revenue by at least 30%.
INCREASED SECURITY Accepting credit cards is more secure than cash because sensitive
data is safely encrypted and transmitted.
INCREASED When you display the credit cards you accept, your brand is
AUTHENTICITY associated with those recognizable and reputable banks in the
minds of your customers.
BIGGER CUSTOMER BASE By accepting credit cards, you can embrace eCommerce and sell
your goods and services online; the world is your market.
LEVELED PLAYING FIELD If your business is accepting credit cards, customers have no reason
to go to your competitors for a more efficient shopping experience.
Moreover, you can take business away from the competition still
dealing in a cash and check only world.
8
Payment Processing 101
02
PAYMENT PROCESSING
BREAKDOWN
9
Payment Processing 101
The payment processing world is a plethora of moving parts. To understand what role each
organization has and the intricacies of how they interact, you need to understand the basics first.
THE PLAYERS
Let’s take a look at the players in the payment processing game.
Name - Acquirer
(alias: Acquiring Bank or Merchant Bank)
Job - An acquirer takes on the risk of credit card processing.
The acquirer solicits, underwrites, and maintains the merchant
account. They may provide the technology, and hardware which
enables the merchant to process the transaction.
Examples - Chase, First Data.
ACQUIRER
Name - Aggregator
Job - Aggregators allow merchants to process payments
without setting up a merchant account. They bundle several
merchants together and allow them to process payments
using a joint merchant account. The set-up is simple and
straightforward.
AGGREGATOR Examples - Square, PayPal.
10
Payment Processing 101
Name - Cardholders
Job - Cardholders are consumers with credit cards used to
purchase goods and services. They are approved by the issuing
bank based on credit worthiness.
Examples - Beyonce, John Smith.
CARDHOLDERS
Name - Issuing Bank
(alias: Issuer)
Job - The issuing bank issues credit cards on behalf of payment
brands. They provide consumers with credit cards, send credit
card statements, and offer consumers credit. The issuer is also
responsible for card security and compensates customers for
losses due to fraud.
ISSUER
Examples - Royal Bank, Bank of America.
Name - Merchants
Job - Merchants are business owners accepting payments in
exchange for goods or services.
Examples - Best Buy, Bob’s Cafe.
MERCHANTS
11
Payment Processing 101
Name - Payment Brand Networks
(alias: Credit Card Associations, Card Brand, or Payment Brand)
Job - Payment brand networks are colloquially known as
credit card and debit card companies. Their job is to govern
compliance policies pertaining to their payment cards, monitor
processing activity, develop new products, and oversee the
clearing and settlement of transactions.
PAYMENT BRAND
Examples - Visa, MasterCard.
Name - Payment Processors (alias: ISO, Independent Service
Organization, or Merchant Account Providers).
Job - Payment processors negotiate processing, setup, and
equipment rates, as well as set up the merchant account. They
act as a middleman between merchants and acquirers. They
may also provide the technology and hardware which enables
the merchant to process the transaction.
PAYMENT PROCESSOR
Examples - Payfirma, Moneris, Elavon.
12
Payment Processing 101
THE PATH OF A TRANSACTION
Merchant processes
the transaction and
sends the request
to the payment Payment
processor processor
submits the
Cardholder 2 3 authorization
presents the
to the payment
card to make
brand
the purchase
Payment
brand sends
the request
to the card
issuer
8
5
Merchant
receives the Card issuer
response and approves or
completes the declines the
transaction
7 6 transaction
and
Payment brand sends the
Payment
sends the message
processor
authorization back to the
forwards the
response to payment
response to the
the payment brand.
merchant
processor
13
Payment Processing 101
THE PATH OF A TRANSACTION
AUTHORIZATION
Authorization is the process of approving or declining a transaction before a purchase can be
completed. When consumers purchase something, the card is swiped, inserted, or entered (in the case
of eCommerce), and the transaction is either approved or declined immediately. But on the back end, it
is far more complex.
Authorization Process
1. The cardholder gives the merchant their credit card for payment. The merchant terminal reads the
card information encoded on the magnetic strip or chip.
2. The merchant terminal then passes the information and transaction amount to the payment
processor.
3. The payment processor encrypts the information into an authorization request and sends it to the
payment brand.
4. The payment brand then routes the authorization request to the issuing bank for review.
5. The issuing bank will approve or decline the transaction by verifying whether the card is legitimate,
is reported lost or stolen, and has enough funds available in the account. The issuing bank then
creates an authorization message and sends the information back to the payment brand.
6. The payment brand, in turn, sends the authorization response back to the processor.
7. The processor transmits the information to the merchant terminal.
8. The merchant concludes the sale with the customer.
And it all happens within seconds.
For eCommerce, once the consumer enters their card information for payment, the processor passes
the information onto the payment brand through a secure gateway.
14
Payment Processing 101
CLEARING
Clearing is the process where the transaction data is sent to the acquirer. There are two types of
clearing. The first is dual-message which usually requires a cardholder signature authentication. Each
authorization creates a record called electronic draft capture (EDC) and is lumped into batches to be
processed and submitted for settlement.
The second type of clearing, single-message, requires a PIN authentication. Single-message
clearing occurs simultaneously with the authorization process; the information needed to post the
transaction to the cardholder’s account is sent at the time the transaction takes place. It happens
immediately rather than later, as is the case with dual-message clearing.
SETTLEMENT
Settlement is an exchange of funds between a card issuer and an acquiring bank to complete a
cleared transaction. It is essentially when merchants are funded and when cardholders are charged.
All debits (purchases for consumers and chargebacks/refunds for merchants) and credits (refunds
for consumers and sales for consumers) are calculated and then the net charge appears on the
cardholder’s statement or in the case of merchants, net funds are deposited.
Clearing and settlement process
1. Transaction data is sent to the acquirer.
2. The acquirer credits the merchant’s account and submits the transaction to the credit card brand
for settlement.
3. The card brand facilitates settlement by paying the acquirer and debits the issuer.
4. The issuer then posts the transaction to the cardholder account, which will show up in the
cardholder’s monthly statement.
5. The cardholder receives the statement and pays the bill.
15
Payment Processing 101
TYPES OF TRANSACTIONS
All credit card transactions can be bucketed under two types:
Card present: occurs when the card is physically present at the time of purchase, such as in-store
purchases where the chip and pin, magnetic stripe, or the tap/NFC feature of the payment card is
being used.
Card not present: occurs when a card is not present during purchase and manually entered instead,
such as phone-in orders or eCommerce transactions.
CHARGEBACKS
Chargebacks are transaction disputes and occur when a customer is unsatisfied with a service or
product or feels the transaction is fraudulent, and goes directly to the credit card company to request
a refund. Chargebacks protect consumers in the event of fraud, customer disputes, or technical errors
(e.g. double charge). However, CBS reports that 86% of chargebacks are fraudulent. For example, a
customer falsely reporting that a package was never received is considered a fraudulent chargeback.
Merchants can dispute unjust chargebacks with the aid of their processor, but that requires time
and money. Chargebacks are detrimental to your business because the product or service is lost, the
transaction fee is often not refunded, and there is the possibility that you may be fined a larger fee.
Chargebacks can lead to unnecessary churn (cancellations) and can be reduced if you follow these
five tips.
16
Payment Processing 101
5 TIPS TO HELP YOU REDUCE CHARGEBACKS
Chargebacks can be prevented if the customer knows exactly
1
what they are paying for, especially in the case of recurring
Be explicit billing (automatic payments). Be as clear as possible in the RTA
(recurring transaction agreement), so the customer understands
every aspect of their contract.
Your cancellation policy should be easy to understand. If a
2 Publish clear refund & customer decides to cancel their contract, strive to end the
cancellation policies relationship on a good note. You want the customer to refer you,
not write scathing reviews.
Ensuring that customers are able to contact you quickly reduces
the possibility that they contact the bank for a chargeback.
3 Be accessible & Responding to customers swiftly provides the opportunity of
prompt retaining unsatisfied customers. Efficiency and promptness are
equally as important when replying to inquiries, resolving issues,
and granting requests.
Transparency from a company can go a long way. Inform
customers of changes to plans or pricing, such as trial or
promotional periods ending; upcoming payments, especially if
4 Provide transparent the last payment was not recent; contract renewals, even if the
communication renewal is automatic; and promotions they are eligible for. Having
consistent and open communication provides the opportunity
for you to nurture your relationship with existing customers and
create loyalty.
Sometimes something other than your business name appears
Ensure that your on consumer’s credit card statement. If you process with an
5 business name is aggregator, their name may appear on the statement as well
recognizable on the which can not only lead to chargebacks but doesn’t serve your
statement brand well. In this situation, make sure your customers know
what will appear on their statement so they expect the charge.
17
Payment Processing 101
03
SHOWDOWN:
MERCHANT ACCOUNT PROVIDERS
VS. AGGREGATORS
18
Payment Processing 101
You have two choices when it comes to payment processing partners: merchant account providers or
aggregators. Both allow you to process payments but do so in different ways.
VS.
AGGREGATORS MERCHANT ACCOUNT
PROVIDERS
In one corner, we have aggregators, who In the other corner, we have merchant
allow merchants to accept payments account providers. They provide you with
without applying for a merchant account. your own merchant account, help ensure
Aggregators group several merchants that you are PCI-compliant, and may
together in an aggregation (hence provide the hardware to accept payments.
the name) and allow them to process Well-known merchant account providers
payments using one joint merchant are Payfirma, Global Payments, and
account. Well-known aggregators are First Data.
Square, Stripe, and PayPal.
19
Payment Processing 101
AGGREGATORS CONS
Increased likelihood of account holds
By removing entry barriers and allowing instant credit card processing, aggregators take on more
risk. Aggregators assume the risk for fraud of all the merchants under their umbrella. So to offset
the risk, they exercise extreme caution when the slightest “irregular” activity is suspected - which
is fairly common. This means that they won’t be shy about freezing accounts without notice. Since
aggregators removed the lengthy application process, they are not aware of unique business
information like your typical processing amounts, so they will put your account and funding on hold to
do their due diligence when something seems out of the norm. Sometimes the holds are only minor
inconveniences (24-48 hours); but in other cases, they can be 30 days long; and in extreme cases, the
account can be shut down.
Higher fees
By allowing a large number of merchants to process instantly and easily, aggregators increase their
own risk. Fraudulent activity is higher in aggregators than true merchant accounts. The higher risk
correlates with higher fees. Aggregator fees are almost always fixed - no matter how much you process.
This means the more you process, the more fees you incur.
Lower limits
Aggregators have their own fees; they are charged based on gross processing volume, which means
that your processing limits are lower than they would be with a merchant account. In addition, if you
exceed the limit, you may be subject to holds and higher processing fees on subsequent transactions.
Branding
With aggregators such as PayPal and Square, their company name may appear with your business
name on credit card statements, which creates inconsistent branding.
PCI Compliance
Technically, aggregators are not banks so they are not necessarily required to follow strict banking
regulations or be PCI-compliant.
20
Payment Processing 101
MERCHANT ACCOUNT PROVIDERS CONS
Longer application and approval process
While the approval process with aggregators is instant, the process to sign up for a merchant account
is lengthier because to mitigate risk, acquiring banks require a comprehensive understanding of your
business to determine your eligibility for a merchant account. Because acquirers have the potential
to lose money every time they process a credit card transaction on behalf of your business, they don’t
hand out accounts to just anyone. Approval is dependent on factors like the risk associated with your
business according to industry standards.
A Plethora of fees
Where aggregators often have simple, fixed fees, merchant account providers have a variety of pricing
structures which can seem confusing if not communicated clearly. (See Chapter 04)
More expensive… up to a point
There can be monthly fees and contracts with merchant account providers. For smaller businesses,
those additional fees may not make sense if the business isn’t processing much in the way of credit card
payments. However, once you start processing more than $40,000, you hit a ceiling where processing
with your own merchant account will actually save you money because fees are tailored to your unique
business and more competitive. With tailored fees, pricing is optimized based on your individual
business (such as high and low average transaction sizes).
21
Payment Processing 101
AGGREGATORS MERCHANT ACCOUNTS
ARE REACTIVE ARE PREVENTIVE
Aggregators take on the risk of all Merchant account providers are
their merchants so they’re extra preventive because they gather
vigilant about potentially fraudulent information about your processing
activity. Aggregators are reactive amounts and frequencies during the
because they don’t obtain your application process. This means that
processing information beforehand; they you have little to no processing disruptions
respond accordingly to your processing because your payment processor knows
activity as it happens. They can freeze your what is considered regular activity and what
account and hold your funds if there is irregular activity to look out for.
suspicious activity to assess the situation.
AND THE WINNER IS…
It depends. Think of it this way: merchant accounts are preventive and
aggregators are reactive. Both options have benefits and drawbacks, so it
becomes a matter of deciding what works best for your individual business.
Most merchants switch to their
own merchant account once their
processing volumes exceed $40,000
because they have an opportunity to
significantly reduce fees at that point. VS.
22
Payment Processing 101
MERCHANT ACCOUNT CHECKLIST
Although the process for securing a merchant account requires more time, a reliable payment processor
will guide you through the process step by step. Once submitted, approval typically takes 3-5 business
days. Below is the information you will need to have on hand when applying for an account:
Company Information Ownership Information
Legal name of business Full name
DBA (doing business as) name Home address
Address Home phone or mobile number
Phone number Date of birth
Business start date SIN or SSN number
Number of employees Driver’s license number
Primary contact
Processing Information
Email
Anticipated monthly credit card sales volume
Website
Most common transaction size
Scanned copy or clear photo of
business void check Largest transaction size
Smallest transaction size
23
Payment Processing 101
04
PRICING DEMYSTIFIED
24
Payment Processing 101
Pricing is the first thing everyone wants to explore but is the most complicated part of the equation.
Each company’s pricing structure will differ but here are the basics.
FEES
Fees are calculated per transaction, and are aregenerally between 1% and 4%. There is also often a fixed
dollar amount per transaction that ranges between $0.10 and $0.30. Below is an exhaustive list of the
common fees that are charged, but keep in mind that not all payment processors will charge every fee.
NON-NEGOTIABLE FEES DESCRIPTION
Interchange Fee The interchange fee is what the acquiring bank pays to the
issuing bank and is commonly referred to as "cost". This fee is set
by the card brands and is non-negotiable. The interchange fee
is higher for non-qualified cards than it is for qualified (basic)
cards, and varies for the different card levels.
Card Brand Cost/Fee This is a small fee that is non-negotiable and is paid to Visa,
(AKA Card Assessment MasterCard, etc., for each transaction. It does not matter
Fee) whether the card is premium or basic, present or not-present.
It's a flat fee per transaction. Payment processors can choose to
mark this up or not.
International Fee This fee is applied when an international card is used for a
transaction and is a non-negotiable fee. Payment processors can
choose to mark this up or not.
Chargeback Fee A chargeback fee is a set fee for handling disputed transactions
either due to fraud or faulty goods/services. Different
processors/acquirers will price chargebacks differently. There is
no set industry fee associated with chargebacks.
25
Payment Processing 101
Transaction rates/fees are the common rates you will hear when setting up the terms associated
with your merchant account. They can vary based on a number of criteria including business type,
processing volume, etc.
TRANSACTION RATES DESCRIPTION
Discount Rate (AKA The discount rate is a percentage that a merchant must pay to
Qualified Rate or process a transaction where a qualified (basic) card is used. It is
Merchant Discount mostly made up of the non-negotiable interchange fee which
Rate) is set by the card brands, plus a small mark-up amount which is
set by the payment processor. A qualified card is the most basic
credit card that has no perks, no benefits, and no points. And to
qualify for the Discount Rate, the qualified card must be present
during the purchase. The discount rate is calculated on a per
transaction basis and is a percentage of the total transaction
size. This is a negotiable rate.
Non-Qualified Rate A non-qualified fee is added on top of the discount rate. It is
a bundled fee associated with non-standard consumer cards
(ie. Rewards cards, business cards, corporate cards, etc.) as
well as cards that are not present for the transaction. This is a
negotiable rate.
Interchange Differential The interchange differential fee is the difference between the
Fee base interchange rate of a card brand (standard credit card with
no rewards, perks or benefits) and the actual interchange rate
of the card. This is a separate fee that is added on top of the
interchange fee.
Transaction Fee A set network (ie. Interac, Visa, MasterCard, Amex, Discover) fee
added to each transaction.
26
Payment Processing 101
TRANSACTION RATES DESCRIPTION
PCI Compliance A fee associated with being PCI-compliant. Payment processors
incur costs associated with being PCI-compliant and will often
transfer those costs on to merchants in the form of monthly,
quarterly, or annual fees.
Statement Fees A fee associated with preparing statements. Some processors
will charge for this service.
Monthly Minimum Fees This varies by processor but is charged to ensure the minimum
fees associated with the required processing volume are met.
For example, if your minimum fees are $20/month, and your
actual processing volume only amounted to fees of $11, you will
be charged the difference of $9.
Annual Fees Some processors will charge annual fees. These are often fees
associated with PCI compliance.
Set-Up Fees Some processors will charge a set-up or "application" fee. These
fees will vary by processor and are negotiable.
Cancellation Fees It varies by processor, but is a fee charged when some services
are discontinued prior to contract end. This is negotiable.
27
Payment Processing 101
PRICING MODELS
Interchange Billback / ERR Interchange Plus /
Differential (Enhanced Recover Cost Plus
Reduced)
With this pricing model, For the interchange plus
you pay the qualified rate, This pricing model pricing model, you pay
the non-qualified fee, if consists of a flat rate the interchange rate
it’s anything other than a and a second charge for of the card plus a fixed
basic card, the card brand all non-qualified cards. percentage, which can be a
fee, and the interchange Essentially, a merchant mixture of additional fees.
differential fee. pays the qualified rate on This is known to be the
the first statement then most transparent pricing
is billed back for non- structure.
qualified cards; the second
charge always shows up in
Tiered the next statement. Since
this pricing structure is
In this pricing model, you Flat
a lump sum, it is hard to
pay based on which tiers
break down the cost of a Pricing models can be
the transaction falls into.
transaction. difficult to grasp, which is
There are three tiers:
why some providers, such
• Qualified (swiped
as aggregators like Square,
transactions),
offer a flat rate pricing
• Mid-qualified
model. No matter the type
(keyed-in transactions),
of card and transaction,
• Non-qualified
you will always pay a fixed
(online transactions).
percentage. The downside
With tiered pricing, fees
of this pricing structure is
are bundled within the
the cost; when you process
tiers, and the true cost of
larger amounts, you end
each fee of a transaction is
up paying a substantial
not disclosed.
amount in fees.
28
Payment Processing 101
05
SECURITY & FRAUD
29
Payment Processing 101
Fraud occurs when the customer does not initiate or has no knowledge of a transaction. This can
happen when a consumer’s physical credit card is stolen or if their credit card information falls into the
wrong hands. Fraudsters obtain sensitive card information by card phishing (scammers posing as a
legitimate organization to obtain sensitive customer information) or card skimming (employees with
access to customer data who copy sensitive information). Fraud is devastating for both customers and
businesses. For the latter, it results in chargeback fees, lost revenue, and a poor company image.
EMV
Credit cards are evolving; the magnetic strip of a credit card is being replaced by the more secure EMV
(commonly known as Chip and PIN), making card present transactions more secure. EMV is named after
its developers: Europay, MasterCard, and Visa. It is a global standard for credit and debit cards that relies
on chip card technology. EMV is more secure because it allows a PIN to verify the cardholder’s identity,
reducing the possibility of merchants accepting lost or stolen cards, and the chip makes it impossible
for thieves to duplicate. EMV also encompasses Chip & Signature (where a signature is required instead
of the PIN) and NFC (tap and pay) transactions. EMV reduces the potential of in-store fraud.
ONLINE FRAUD
Online sales in the U.S are expected to increase to $392.5 billion by 2016 and $491.5 billion by 2018.
The eCommerce market continues to grow rapidly as web payments become increasingly convenient.
Fraud chases the money, and the money is going online.
Over the last four years in North America, approximately 0.9% of all online revenue has been
fraudulent. That percentage might seem small, but in 2014, card fraud worldwide exceeded $16 billion.
HOW TO DETECT AND PREVENT ONLINE FRAUD
The good news is anti-fraud technology is constantly evolving and adapting, but the bad news is so are
fraudsters. Fraud happens; it’s inevitable, but there are precautions that you can take to ensure your
business is less vulnerable.
30
Payment Processing 101
PRECAUTIONS AGAINST FRAUD
IMPLEMENT FRAUD MONITOR ORDER IMPLEMENT SECURE
PREVENTION TOOLS ACTIVITY POLICIES
Anti-fraud tools will While not all suspicious Additional measures that
provide structural activity will be fraudulent, you can integrate into
protection against there’s no harm in paying your business policies for
scammers. attention to: a secure checkout.
Display anti-fraud notices International address or Require strong passwords;
and seals; these will corporation; fraud is more the more complex the
deter the less ambitious prevalent overseas. password, the harder it is for
scammers. Orders with the same name, scammers to hack.
Layer your security. The address, or IP address but Require that customers
more layers you have, different credit cards. provide both the credit card
the harder to penetrate. Emails that don’t link back security code and expiry
Layering involves installing to a real domain. date at checkout.
a basic foundation of
Urgent orders; there is a Ship packages with tracking
protection like a firewall
short window between numbers and ask for a
and then adding additional
when a card is stolen to signature confirmation upon
authentication on top,
when it is reported. delivery to ensure shipments
including social logins or 3D
are received.
secure programs. IP addresses that don’t
correspond with the Ensure PCI compliance in
Use solid SSL authentication
country of the billing accordance with existing
to encrypt and transmit
address on file. restrictions set forth by the
customer data so fraudsters
Payment Card Industry
can’t access sensitive Larger than normal orders,
in both quantity and cost. Use payment processors
information.
that will help ensure your
Use Address Verification Phone numbers with area
practices are PCI-compliant.
Service (AVS) to codes that do not match
automatically check the the address.
customer’s billing address
against the one on file with
the issuing bank.
31
Payment Processing 101
PCI COMPLIANCE
Along with payment card industry growth
comes a surge in technology crimes, which leads
to stricter, more complex standards. PCI DSS
(Payment Card Industry Data Security Standard)
was put into place by the Security Standards
Council, comprised of the five major credit card
companies: Visa, MasterCard, Amex, Discover, and
JCB. PCI Compliance is a set of 12 requirements
that ensure a safe environment to process credit
card payments:
1. Install and maintain a firewall configuration to protect cardholder data.
2. Do not use vendor-supplied defaults for system passwords and other security parameters.
3. Protect stored cardholder data.
4. Encrypt transmission of cardholder data across open, public networks.
5. Protect all systems against malware and regularly update anti-virus software or programs.
6. Develop and maintain secure systems and applications.
7. Restrict access to cardholder data by business need to know.
8. Identify and authenticate access to system components.
9. Restrict physical access to cardholder data.
10. Track and monitor all access to network resources and cardholder data.
11. Regularly test security systems and processes.
12. Maintain a policy that addresses information security for all personnel.
Compliance is enforced by the card brands. All merchants must comply or else face fees, penalties, or
account termination. Constant security checks are required to ensure that risks are identified and fixed.
32
Payment Processing 101
06
OMNI-CHANNEL MAGIC
33
Payment Processing 101
Omni-channel refers to providing a holistic experience for the many ways consumers interact with
you (online, in-store, mobile, social media, and more). Adopting an omni-channel payment ecosystem
provides your customers with multiple ways to buy from you and sets your business up for growth.
Omni-channel payment systems, like Payfirma, enable you to offer multiple payment methods with a
single account and see your transaction data collected in one convenient place.
Countless companies have successfully implemented multiple payment methods. Apple executes
omni-channel flawlessly; not only do they have a plethora of physical locations worldwide and an
interactive online store, but they also equip each of their salespeople with a mobile device to accept
payments anywhere in the stores. In doing so, they turned each salesperson into a mobile POS.
McDonald’s is another company that is
recognizing the value of omni-channel.
McDonald’s leveraged society’s obsession
with mobile technology to their benefit; “At
McDonald’s, we are always striving to have OFFERING
CUSTOMERS
relevant experiences for our customers,
and mobile payments is one more way to
provide greater ease and convenience”,
says Anja Carroll, U.S Vice President of
THE OPTION TO
Media and Consumer Connection. They
readily implemented mobile payments
PAY HOWEVER
in their restaurants because they “prefer THEY WANT IS
to allow [their] customers to choose how
they prefer to pay”. In efforts to remove THE HEART OF
further friction in the paying process, select
McDonald’s restaurants in San Francisco OMNI-CHANNEL
RETAILING
are participating in an early prototype of
Google’s Hands Free, which allows Android
phone users to pay in stores simply with
spoken commands. Offering customers
the option to pay however they want is the
heart of omni-channel retailing.
34
Payment Processing 101
THE DIFFERENT PAYMENT CHANNELS
Modern consumers research and purchase across multiple channels. Below is an in-depth look
into each channel: its best uses and benefits.
WEB TERMINALS RECURRING MOBILE PAYMENTS
BILLING
eCOMMERCE TRADITIONAL TABLET POS
TERMINALS
35
Payment Processing 101
WEB TERMINALS
Web terminals (also known as virtual Benefits:
terminals) are POS (point of sale) systems • Speed up B2B payments and simplify
accessible on any web browser, and turn wholesale transactions.
any device into a terminal as long as there is • Avoid purchasing expensive POS
internet access. You type in your sale details, equipment.
BEST USED FOR
and the payment is securely processed in • Safely record customer info and track
seconds. customers purchasing habits in one place.
• Store credit cards for each customer.
Best used for card not present transactions,
like those taken over the phone or via mail
order.
RECURRING BILLING
Recurring billing (or subscription billing) Benefits:
is an automated payment that occurs on • Billing errors and credit card declines are
a scheduled basis. Many companies like reduced, if not eliminated.
Barkbox are using recurring billing as a core • Credit card details only need to be
payment method. This billing structure is entered once.
also becoming popular with churches like • Future revenue can be better predicted.
Parkside Church so that they can implement • Cash flow is improved because payments
recurring donations. Just store your are automatic.
customer’s card information and subscribe • Reduction in administrative time.
them to a payment plan.
Best used for memberships, subscriptions,
donations, and B2B services.
36
Payment Processing 101
MOBILE PAYMENTS
Mobile payments are a blanket term that includes any payment involving a mobile device, among
which include proprietary apps (Starbucks), mobile wallets (Apple Pay), payments within apps or
mobile websites, and card readers. They can be facilitated by SMS, QR Code, or NFC. Mobile payments
make purchasing more convenient for consumers. We’re going to explore two of the more common
mobile payment categories: payments made by a mobile device by consumers, and payments taken on
a mobile device by merchants.
A. PAYMENTS MADE BY A MOBILE DEVICE
The first type of mobile payment refers to
making a purchase with a mobile phone. Benefits:
This is facilitated by NFC, which allows two • Customer ease. In our fast-paced culture,
devices to transfer data through radio signals consumers want it easy, and they want it
by tapping the devices together or bringing fast. The more streamlined you can make
them near one another (up to a distance of 10 the experience for customers, the more
cm). Consumers store credit card information likely you are to gain loyalty.
in mobile wallets creating a virtual credit card • Keep up with the times. Technology is
and then pay with a tap on the terminal. ever-evolving: increasingly more mobile
devices are incorporating NFC technology
Millennials (Generation Y), in particular, and more merchants are accepting
are strong advocates for mobile payments. mobile payments. You can’t afford to miss
This is largely attributed to the fact that a sale; your business needs to adapt by
they grew up in a digital world, with letting your customers pay the way they
technology touching every aspect of their want.
lives. Millennials are more likely to embrace
the technological shift in payments than
other generations and have already started
to do so. 44% of millennials would prefer to
Best used for in-store payments and
use mobile phones to pay rather than cash,
mobile loyalty programs.
particularly for smaller purchases.
37
Payment Processing 101
B. PAYMENTS TAKEN ON A MOBILE DEVICE
Benefits:
• Expedite checkout. By transforming
mobile devices into POS systems, the
traditional concept of a cash register
becomes obsolete. When customers see
a long line at the till, their desire to avoid
waiting in line outweighs the need to
purchase the product; 86% of consumers
will avoid a store if the wait time is too
long. You hold in your hands the ability to
abolish long lines and recover those sales
(line busting).
• Get paid faster. With mobile payments,
your business can go mobile which
The second type of mobile payments are means you can take payments instantly
payments taken on your mobile device. Insert when you make house calls, special
the card reader (also referred to as a swiper deliveries, or provide onsite services.
or dongle) into the audio jack of your mobile • Obtain reporting. With a payment
device, and you’re set to take payments processor that utilizes cloud technology,
anywhere. your mobile payments transaction history
(by time and place) is automatically
aggregated into one secure, convenient
Best used for payments taken in the field, place. This provides valuable sales
selling on the go at trade shows; and in- analytics which help you to understand
store mobility, expediting the checkout the opportunities in your business.
process. • Email receipts. Mobile payments create
a perfect opportunity for you to email
receipts. By doing so, you reduce paper
cost, create opportunities to upsell (with
related product recommendations), and
increase engagement (with social share
buttons).
38
Payment Processing 101
ECOMMERCE
eCommerce is the selling of goods and Benefits
services online by connecting your website to • An eCommerce store is open 24/7.
a secure online payment gateway. • Consumers can access a global range of
products and services.
• Merchants expand their customer base to
Best used for any goods or services sold a worldwide audience.
online. • Consumers can shop from the comfort of
their homes.
TRADITIONAL TERMINALS
Traditional terminals are the most standard
payment channel. A traditional terminal is
hardware that allows a merchant to swipe or
insert the credit card to process a credit card
transaction.
Benefit:
• Most universally accepted way to pay.
Best used for in-store purchases.
39
Payment Processing 101
TABLET POS
Tablet POS turns any tablet into a full POS Benefits
system to process cash, check, and credit • Removes the need for a bulky, traditional
cards anywhere in your store, or at the register and saves counter space.
counter with a cash drawer and receipt • Keeps an organized product inventory of
printer. photos, SKUs, and prices.
• Provides the ability to email receipts.
Best used for in-store checkout, sales staff
can ring up customers on an iPad from
anywhere in your store, or at the counter,
for an efficient, space-saving process.
40
Payment Processing 101
CASE STUDY
A waste management and junk removal service
company, 505-Junk, adopted omni-channel methods
and reaped the rewards. The nature of their business
is weighing and removing junk out in the field. Their
previous payment process consisted of contacting the
customer for payment after the service or obtaining the
payment information on-site, but waiting to process
once they were back at the office.
Needless to say, cash flow was almost stagnant, and they
wasted a lot of administrative time chasing payments.
Since partnering with Payfirma, they use the Web
Terminal so they can process payments at the office, and
use our mobile solutions in the field to take payments
immediately when the job is done. By taking payments
and authorizing payments on the spot, they gained
efficiencies and improved cash flow because payment
was immediate and guaranteed.
Click here to read the full story
41
Payment Processing 101
07
HOW TO FIND YOUR
PAYMENT PROCESSING
SOUL MATE
42
Payment Processing 101
Payment companies are a dime a dozen. Here are some things to consider as you navigate the
payments terrain and find the processor that’s right for you.
RELIABLE CUSTOMER When you’re faced with technical difficulties and impatient
SERVICE customers, it can be frustrating when you can’t get a hold of your
payment processor for assistance. Many payment processors offer
24/7 customer service and strive to resolve issues and answer
questions efficiently and delightfully.
“IT’S VERY REASSURING TO HAVE SUCH A
PERSONABLE CUSTOMER SERVICE TEAM READY
TO HELP AT ANYTIME AND WITH ANYTHING”
Krista Barr of Barr’s Roofing on Payfirma customer service
TRANSACTION FEES Transaction fees differ, whether from aggregator and merchant
account provider or from company to company. As covered in
Chapter 03, aggregator fees are higher and frequently fixed,
and merchant account provider fees are tailored to your unique
business.
SECURITY A reliable payment processor needs to ensure that merchants are
PCI-compliant. A payment processor should enable merchants to
effectively manage risk and to detect, prevent, and reduce fraud.
43
Payment Processing 101
TRANSPARENCY Transparency is a big factor. Surprises, like finding twenty dollars
you did not know you had in your pocket, are nice but not typically
a trait you look for in a payment processor. Some companies
will advertise low fees based on the qualified rate (card present
transactions with non-reward credit cards) to draw customers in,
and won’t disclose that most of your transactions will likely have
higher rates. Look for a payment processor that is upfront and clear
about fees.
REPORTING Your payment processor should provide you with robust reporting.
Reporting and analytics are the headlights of your car; they shine
a light on the road ahead and let you see where you need to go.
When you accept credit cards and other forms of payment, you get
aggregated payment data which gives you a wealth of information
and insight. They provide the opportunity for you to learn about
your customers (their behavior, habits, and preferences), as well
as real-time data on when, where, and how your transactions are
occurring - all of which help you make better business decisions.
SCALABILITY A payment processor should help you grow. Aggregators are better
suited for smaller businesses or ones just getting started. But when
your business expands and grows, a merchant account provider can
provide you with better rates and tools to operate more efficiently.
In addition, the ability to implement recurring billing, set up an
eCommerce shop, and take mobile payments are all possible —
complete with the security and safety that a merchant account
provides.
44
Payment Processing 101
YOU
&
PAYFIRMA
PAYMENT PROCESSING
SOUL MATES
Don’t waste another minute: contact us today.
Let’s get hitched
45
Payment Processing 101
08
THE FUTURE OF
PAYMENTS
46
Payment Processing 101
The path of payments has come a long way and continues to evolve. What started out as mere barter
of resources, services, and livestock, evolved into grain and shells, metal coins, leather, and eventually
paper money. From there, checks and gold came onto the scene, followed by credit cards and online
payments. Today mobile payments are taking the stage, with cryptocurrency looming on the horizon.
CRYPTOCURRENCY
Cryptocurrency is the next generation in payments: an entirely digital currency. Payment is based on
complex algorithms. Once the algorithm has been resolved, cryptocoins are unlocked and provided
to the person whose computer calculated the math. This process is referred to as “mining” and is
driven by a community that agrees on the value and opportunity the currency presents. Many view
cryptocurrency as revolutionary because it operates independent of a central bank. In that respect,
it can be considered the currency of the people because it shifts the monopoly of power and flow of
currency into the hands of consumers. While cryptocurrency has more autonomy than any previous
payment method, the value can fluctuate based on demand for that currency.
BITCOIN
Bitcoin is the first and most popular form of cryptocurrency, stored electronically in bitcoin wallets that
allow you to buy and use them securely. Rather than the main networks that credit cards use, bitcoin
has a decentralized community of servers that are managed by individuals and businesses that carry
out transaction matching and data transfer. This means there is no need for a middle-man, like a bank
or credit agency. The mathematical formula is free, software is open source, and transactions are all
publically recorded in a master list called the blockchain. Despite the open nature of bitcoin, it is private
and secure for users because no personal information is linked to accounts or transactions. Bitcoin is
slowly but surely being accepted by merchants around the world; major online retailers like Overstock,
TigerDirect, and Subway have already started accepting bitcoin payments.
47
Payment Processing 101
CONCLUSION
48
Payment Processing 101
From currency’s extended history, it’s evident that the payment landscape is always adapting.
Currently, we’re living in an age of electronic payments. Modern society is a culture of convenience
which ushered in the ubiquity of credit cards. In a culture where speed is paramount, this electronic
payment has streamlined the purchasing experience for consumers. For merchants, the benefits
of accepting credit cards are boundless, from improving office efficiencies to increasing sales. The
proliferation of technology encouraged the parallel ascent of another electronic purchasing method:
mobile payments. For a society that lives more and more of its life online, it only made sense that the
next natural progression was cryptocurrency, an entirely digital form of payment.
The search for a payment processor for your unique business can be a challenge, but the right
company can help you save time and money, ensure your business is PCI-compliant, and ultimately
grow your business. Accepting credit cards and mobile payments, and in the future, cryptocurrency
is at the heart of what Payfirma believes in: omni-channel payment processing because allowing your
customers to pay any way they want creates customer loyalty and helps your business grow.
Payment processing can be complex. From how a transaction is processed, to the differences between
an aggregator and a merchant account provider, to pricing structures, we hope this eBook serves as a
guide to helping you understand the complicated domain that is the payments industry.
PAY
49
Payment Processing 101
GLOSSARY
Acquirer: An acquirer solicits, underwrites, and maintains the merchant account. They may provide the
technology that allows the merchants to process transactions, take on chargeback risk of a business, and deposit
funds into a merchant’s bank account.
Aggregator: A service provider through which merchants can process their payment transactions without a
merchant account.
Annual Fee: This fee is often associated with PCI compliance.
Application Fee: This is another one-time fee charged for processing the application.
Authorization: The process by which a transaction is approved or declined by the issuer. Merchants use this to
ensure a customer has sufficient funds available on their credit limit at the time the request is being made.
Billback Pricing Model: A pricing model where a merchant pays one set rate for qualified cards then is billed
another rate for all non-qualified cards in the next statement.
Bitcoin: A popular form of cryptocurrency that is created and held digitally.
Cancellation Fee: This is a fee charged when some services are discontinued prior to contract end.
Card Brand Fee: This is a small fee that is paid to Visa and MasterCard each transaction
Card Not Present: Transactions where the credit card is not present at the time of purchase, such as online
purchases. Credit card data is manually entered instead of swiped.
Card Present: Transactions where the credit card is present at the time of purchase, such as in-store purchases.
Cardholders: Consumers with credit cards that purchase goods.
Card Phishing: Scammers posing as a legitimate organization to obtain sensitive customer information.
Card Skimming: The theft of payment card information used in an otherwise legitimate transaction. The thief
can procure card numbers using manual (photocopying receipts) or electronic (using a device to swipe and store
numbers) methods.
Chargebacks: A return of funds to a consumer after they disputed a transaction, either due to fraud or faulty
goods/services.
Chargeback Fee: A chargeback fee is a set fee for handling disputed transactions either due to fraud or faulty
goods/services.
Check: An order for the transfer of money.
Churn: The rate that you are losing customers.
50
Payment Processing 101
Clearing: Activity from the time a commitment is made for a transaction until it is settled. Clearing turns the
promise of payment into an actual movement of money from one bank to another.
Cost Plus Pricing Model: See Interchange Plus Pricing Model.
Credit Card: A plastic card with a credit limit used to purchase goods and services.
Credit Card Fraud: Theft and fraud committed using or involving a credit and debit card. It is either theft of the
actual card or sensitive card information and then the use of either without the knowledge of the cardholder.
Cryptocurrency: A digital currency in which encryption techniques are used to regulate the generation of units
of currency and verify the transfer of funds, operating independently of a central bank.
CVV: Card Verification Value is a unique 3 or 4 digit number found on the back of a credit or debit card. It provides
an extra layer of security to minimize unauthorized transactions.
Debit Card: A plastic payment card that provides the cardholder electronic access to their bank account.
Discount Rate (or Merchant Discount Rate): The fee charged by your credit card processor and paid to a
merchant bank in exchange for being able to accept credit cards. It is calculated on a per transaction basis and
based upon the total amount of the transaction size.
eCommerce: Trading in products or services using computer networks, such as the Internet.
EMV (Europay, MasterCard, and Visa): Otherwise known as chip and pin. It is a global standard for credit and
debit card payments based on chip card technology.
ERR: Stands for Enhanced Recover Reduced. See Billback Pricing Model.
Flat Fee: A pricing model that has a fixed fee regardless of card type, business type, and transaction type. This is
the fee type for aggregators.
Fraud: When a customer does not initiate or has no knowledge of the transaction.
Interchange: Interchange is what the acquiring bank pays to the issuing bank. Each type of credit card has a
different interchange rate set by the card brands.
Interchange Differential Pricing Model: With this pricing model, you pay the qualified rate, the non-qualified
fee, if it’s anything other than a basic card, the card brand fee, and the interchange differential fee.
Interchange Differential Fee: The interchange differential fee is the difference between the interchange rate of a
premium or non-qualified card (i.e. cash back credit card) and the interchange rate of a qualified card.
Interchange Plus Pricing Model: A pricing model that consists of the interchange rate of the card plus a fixed
percentage.
International Fee: This fee is applied when an international card is used for a transaction.
ISO (Independent Service Organization): Also known as payment processors. They solicit businesses for
merchant services. They work with an Acquirer who facilitates the settlement of transactions into the merchant
account. ISOs set up the merchant account and negotiate fees.
51
Payment Processing 101
Issuing Bank (Issuer): A bank or financial institution that provides credit and a physical credit card to the
customer. They are responsible for approving and declining transactions, billing, and collecting the owed funds
from the customer.
Line Busting: Abolishing line-ups.
Merchant: A company accepting payment cards in exchange for goods or services.
Merchant Account: A type of bank account that allows businesses to accept payments by payment cards,
typically debit or credit cards. It is established under an agreement between an acceptor and a merchant
acquiring bank for the settlement of payment card transactions.
Mobile Payments: Payments accepted on a mobile device or a payment made on a mobile device.
Mobile Wallet: An electronic device that allows an individual to make electronic transactions.
Monthly Minimum Fee: A fee that is charged if a certain transaction total for the month or year is not reached.
Multichannel: Providing customers multiple payment channels to choose from.
NFC (Near Field Communication): The technology that allows the transfer of information when two enabled
devices are in close proximity through radio waves.
Non-qualified: Any card that is not a standard no perks, no benefits card that is present when and where the
transaction takes place.
Non-qualified Fee: This is a bundled fee associated with non-standard consumer cards and cards that are not
present for the transaction.
Omni-channel: Omni-channel refers to providing a holistic experience for the many ways consumers interact
with you. For payments, this means providing multiple integrated methods for your customers to pay.
Payment Brand Networks: Credit card and debit card companies. Their role is to govern compliance policies
pertaining to the bank cards, monitor processing activity, develop new products, and oversee the clearing and
settlement of transactions. Examples are Visa and MasterCard.
Payment Gateway: It facilitates the transfer of information between a payment portal (website, mobile phone)
and the processor (Payfirma).
Payment Processor: Organizations that partner with an acquirer to open merchant accounts, handle support,
manage payment processing, and build technology on behalf of acquirers.
PCI DSS (Payment Card Industry Data Security Standard) or PCI Compliance: A set of requirements that
ensure all merchants that come into credit card information maintain a secure environment.
PCI (Payment Card Industry) Fee: The PCI fee is paid to the Payment Card Industry, either for non-compliance or
compliance.
52
Payment Processing 101
POS (Point of Sale): The location where payment is accepted. This is often referred to as checkout.
Qualified: A baseline credit card that is a standard, no perks, no benefits card that is present when and where the
transaction takes place.
Recurring Billing (subscription billing): Automatic and periodic payment under a pre-authorized agreement for
an ongoing product or service.
Refund: A credit issued by the merchant back to a customer when a customer returns a product.
Reporting: Analytics and statistics on your payment information.
Set-up Fee: This is a one-time fee charged for the set-up of a specific product or service like an eCommerce set-
up fee.
Settlement: An exchange of funds between a card issuer and an acquiring bank to complete a cleared
transaction
Statement: A fee associated with preparing statements.
Subscription Billing: see recurring billing.
Tablet POS: A completely functional POS system on a tablet.
Tiered: A pricing model in which the rates are structured in tiers. You pay different rates for different types of
cards.
Traditional Terminal: A physical wired or wireless terminal that allows you to accept debit and credit card
payments.
Transactions Fee: This fee is charged for every credit card transaction.
Virtual Terminal: A virtual terminal that acts like a POS system by allowing you to accept credit cards through
your web browser.
Web Terminal: See Virtual Terminal.
53
Payment Processing 101
Getting paid should be the least
of your worries.
With Payfirma you can accept payments
online, in-store, and while mobile,
with one merchant account.
Get started today
payfirma.com | 1-800-747-6883
54
