/ February 23, 2017/ Business Financial

Deferred Processing

Deferred processing is the less expensive alternative to real time credit card processing. Many clients won’t know whether you have real time or deferred card processing.

Deferred processing enables you to process a charge card by hand. This processing technique does not have automation. It is a slow manual process. Processing dozens of orders on a charge
card terminal is a laborious job.

In addition to the included labor, potential for mistakes is high. It is easy to mistype a number that could result in a transactions not going through and losing that sale.

How does online credit processing work?

· Customer includes product to shopping cart.

· The connection enters safe and secure mode, as the customer is required to complete payment details.

· The customer’s internet browser encrypts the information in between the web server and the customer computer system.

· Customer will complete order and leave supplier website.

· The vendor at a later time processes orders through charge card terminal.

· The terminal provides feedback to vendor whether or not the transaction stopped working or actually went through.

International Credit Card Processing

Accepting global cards is danger for several factors. Most significantly, you will not be able to perform an address confirmation. If a foreign consumer pays with a stolen credit card, you
will be stuck with the costs.

In addition to the charge back, the bank will charge you additional fees. To add fuel to the fire, you’ll have to pay a charge back fee as well. On top of all of that, you will be stuck
with the shipping charges.

International Orders

Accepting global orders can complicate your company profoundly. Mainly, there is the above explained payment issue. Second, shipping internationally is much more costly than shipping within
the U.S. International orders require a great deal of additional work that will increase your expenditures and decrease your earnings margins.

Deferred processing is the least pricey option to actual real time processing for credit cards. The lack of a safe gateway in your payment processing system doesn’t imply that it is risky.
The majority of consumers will not know whether you have real time or deferred card processing.

What is also very important to understand when a processor in the US is attempting to sign an agreement for merchant payment processing overseas
is the company overseas needs an actual physical address in the US. In other words they need a branch office in the US in order for the contract to go through.

Many people dont realize that the need for chips in credit cards which are required nowadays stemmed from Europe. They started the increased protection of businesses and consumers far earlier
than the US.

Thats they Europe has had far fewer hacking incidents than the US. The US has had numerous hacking incidents of major corporations over the last decade costing companies millions in profits.
Thats why the EMV laws came into effect at the end of 2015 and are now required in 2016. If you are a business owner, make sure you are compliant and that your equipment is up to date.