Credit card processing can be recognized by knowing that there exist two types of processors that process credit cards: third-party payment gateways and merchant accounts providers. Businesses that provide merchant account services allow customers to make transactions with their credit cards through their sites. A credit card processing service is charged a fee for the service. These fees are then transfer to customers with higher cost. Third-party payment processors (TPPG) to the contrary, are companies that offer another method of processing debit and credit card transaction. The TPPGs don’t charge fee, but they receive a percentage of each transaction in the form of a commission.

Merchant account providers typically offer different services based upon the amount of transactions they manage per month. For example, you may get a complimentary or low-cost MAP if your company has less than 10,000 in monthly sales. Credit unions, banks, and various financial institutions usually provide third-party payment gateways. Certain TPPGs are able to provide basic services for businesses of smaller size with less than 10,000 transactions annually. Some offer additional services for larger businesses. 864vihta18.