Adult Merchant High Risk Credit Card Processing

This article will attempt to be a quick crash course in educating business owners on how to a credit card transaction works. I assume that you are ready to take your business to the next step and offer your customers additional modes of payments, or you are thinking of an online business and are ready to setup online Adult merchant credit card processing, no matter what the purpose of accepting credit cards, if you want to know how credit card transactions work in simple layman terms then read on.

How an adult merchant credit card transaction works

An adult merchant credit card transaction, is divided into three steps, the first steps involves the front end of the transaction accepting and transmitting the credit card details, generally there are three ways of accepting a credit card. The first is using a swipe machine or what is called an electronic point of sale terminal or simply EPOS. The second method is keying in the credit card number into a system and waiting for approval, and the third is to accept credit card details online and then processing those details online.

In cases one and two, the terminals are directly linked to a server, the machine dials out to a server and the server receives the data, quickly processes the details and returns an authorization, or rejection of the transaction. If accepted the adult merchant keeps the credit card receipt and the next day or whenever he wants, he or she can request cash against the receipt, the money is then transferred into the merchant's bank account minus an interchange fee. The interchange fee can be equated to a processing fees for the actual fund transfer.

In the case of an online transaction, you can actually store the credit card information, and then using a third party 'gateway' get the process the transaction, the money is then credited to your merchant account. The problem with online transactions is that they are not always in real time, like the EPOS transactions, and the transactions can be rejected later on, this is particularly disconcerting for sites like online casinos where people can actually play for real money, and later on decline to pay. In such cases, adult merchant are provided specialized high risk merchant accounts that actually have methods to prevent such credit card misuse or fraud.

If you notice in both the EPOS and internet based credit card transaction, there is a wait period before the actual transaction and the merchant receiving the funds. The time period that it takes for the funds to actually reach a vendor's bank account is usually what prompts most vendors to think twice before opting for a adult merchant credit card payment system, as every time they request a payment they are levied an interchange fees, however this obstacle is overcome by simply passing the cost on to the customer and marking up the prices of the goods. And since the fees involved are not exactly earth shattering, no customer actually minds paying a little extra for the convenience of credit cards.