April 6th, 2017 by Elma Jane
Payment types and it’s categories
The two main category types when it comes to credit card processing are swiped and keyed. Card present or card-not-present.
Swiped or card present transaction – merchants do a face-to-face transaction. A merchant can capture card information by dipping the chip or swiping the card in the terminal or POS. Merchants directly interact with a customer so the risk is low.
Card-Present Sub Categories:
Retail Merchants – conduct transactions face to face in a retail environment.
Face to Face (mobile) – this type of merchant is typically on the go, such as a vendor at a trade show. You can use a service like converge mobile that allows you to take the information in person.
Restaurant – the same as retail merchants, the difference is they may require the ability to add tips to their charges.
Lodging – processes their transactions like retail merchants except they may adjust the settlement amount depending on the customer’s length of stay.
Keyed or card-not-present are high risk, because merchants indirectly collect customers card information, and can process transactions in various ways.
Card-Not-Present Sub categories:
Internet/Ecommerce – conducts business through a web site by utilizing a shopping cart and an Internet payment gateway service. The payment gateway then collects the credit card information and processes it in real time.
Mail & Telephone Order (MOTO) – typically take the customer’s credit card information over the phone, by mail or through the Internet. They then manually process the transaction by keying it into either a credit card machine or through a virtual terminal such as Converge.
Talk to our payment consultant to know the best solution for your business.
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Posted in Best Practices for Merchants Tagged with: card present, card-not-present, credit card, customer, ecommerce, merchants, payment, payment gateway, POS, swiped and keyed, terminal, virtual terminal