A Quick Guide In Payment Processing Services And Terms

  • May 22, 2021

Most successful companies use one or more third-party payment processing services to process their credit card orders online, as this does not require a live merchant account or the need to set up an expensive SSL certificate.  You can also know more about payment processing by visiting https://jnamerchant.com/.

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Third-party payment processing services process credit card payments and send monthly checks (usually) or wire transfers to sellers, minus various processing fees that vary from service to service.

These third-party payment processing solutions provide sellers with a link to a secure website where they can direct customers to complete orders.

Below are the basic terms and concepts that standard payment processing services use to assist sellers in a better way to compare when choosing a payment processing service.

Payment cycle

The time interval during which the order is accepted for payment. Can be monthly, bi-monthly, weekly, etc. At the end of each payment cycle, payment must be sent to the seller.

Payment holding time

Unfortunately, each payment processing service intentionally holds payments for periods varying from a few days to several months. 

Instead of sending payments as soon as the payment cycle ends, they hold payments for a set amount of time to delay payment. They say this to protect them from fraud, return payments, and help them increase profits. 

It is advisable to read the Terms of Use and contracts before registering, as many payment processing services state that they have the right to cancel or terminate their services for any customer without providing any reason.