Business starts with the barter method of transaction in ancient history. Now it slowly advanced into cashless transaction. The technology of today’s world largely supports this practice. Cashless transaction does not include paper money. For every purchase money will be paid from the buyer to the seller account through the bank transfers, cheques and cards.
In business carrying large sum of money is not feasible. Most of the people use their credit or debit cards to pay for their purchase. The banks in which the buyer has the account may issue the credit or debit card. When the card is used for the purchase the money will be transferred from the buyer’s bank to the merchant’s account.
Debit card limits the transfer of money by the available money in the account. The credit card is a kind of short loan provider. It can lend the money from the bank for the purchase. Every month it can be utilized and should be returned by the end of the month. This facilitates the money flow in business. Each type of credit cards is having their limits according to the type of account, income and savings of the account holder. It is not compulsory to have the credit for all account holders.
The service providers are nothing but the independent organizations or small companies outsourced by Visa and master card network providers’ that is the banks. They maintain the merchant’s account for the card transaction. The card providers will have the right to limit the loan amount of the buyer. The card will be swiped at the point of sale. There will be a machine with a magnetic reader which will read all the information of the credit card. The High Risk Solutions is a complicated procedure. They acquire the data and submit it to the network providers. Then the banks will respond to it by transferring money from the buyer’s account to the seller’s account.
There are many service providers doing their best in money transactions. Due to the competition in ISOs there are several offers are given to the merchants. The merchants should know how to choose the best organization for their business transactions. They provide discounts for the service charge, authorization charges, transaction charges etc. They also provide the best customer care facility to help the merchants for 24 hours a day.