One
thing for sure is that credit card services can be overwhelming, expensive and
confusing.
At
one point it seems like a credit card machine is the answer to many problems.
That is until you receive your monthly statement and realize how much money you
are losing in fees. That’s why many
people think of credit card readers as a “necessary evil.” To overcome this perspective, you need to
know more about the credit card industry.
Here is a rundown.
The
following is the list of parties involved in a credit card business.
- Merchant:
This is the business owner who is accepting your payment.
- Cardholder:
This is the customer who owns the credit card and is going to use it for
various purchases.
- Card Association:
These are not the banks but the governing bodies who are in charge of
setting the exchange rates. They also
are responsible for the maintenance and improvement of networks. The
credit card processing fee is highly dependent on the card association and
the acquiring bank.
- Issuing
bank: This is the cardholder’s bank, the one who issues cards to consumers
(they are a part of the card associations).
