Understanding The Card Payment Processor


Understanding The Card Payment Processor

Credit card companies can take up to 30% of the transaction charges when you use a credit card to make a purchase, and sometimes additional fees can add up to 20% or more. The purpose of this whitepaper is to inform you on how to get the lowest cost credit card transaction processed with Purepay Payments Limited.

The Merchant And The Acquirer

Understanding The Card Payment ProcessorThe role of the Merchant and the Acquirer in a credit card transaction is a complex and emotional one. The merchant attempts to maximize profit while at the same time providing the best possible customer experience. The Acquirer tries to maximize revenue for its own bank and for its clients.

The main conflict between these two parties is based on their respective goals. The Merchant wants to minimize their merchant discount rate, or in other words, their commission as well as keep them happy. The Acquirer wants to maximize revenue, or in other words, their profit.

In many cases, they are willing to take drastic measures to achieve these goals. For example, when credit card processing fees are high, merchants will often turn over their management of their point-of-sale systems (POS) to a 3rd party card payment processor or payment service provider (PSP). Card payment processor charge merchants lower fees (typically 1% + $0.05) than those charged by Visa and MasterCard’s POS service providers.

However, there are plenty of cases where it’s not so easy for either party to get what they want; sometimes it’s because one side wants more than the other side has or even has more than enough money but isn’t willing to pay for it anymore (i.e., banks). This is where business becomes complicated. If you are a merchant, you have no control over your customers’ financial situation nor do you control what your customers purchase from you – this leaves you with no way out except closing your business.

The Cardholder And The Issuer

Understanding The Card Payment ProcessorFor stores that process credit card payments, the process is simple. Purepay processes the payment and sends money to the acquirer; the acquirer then sends the funds to your account.

The credit card transaction process works with any merchant that accepts Visa, MasterCard, American Express, Discover (or any other prepaid card).

For merchants that are not processing credit card payments, you’re going to have to go with a service provider like Paypal or Amazon.com that offers a full-service solution from its point of view. That means it handles all your online purchases, but you will be missing out on some features such as dedicated merchant account.

Credit Card Transaction Process

Understanding The Card Payment ProcessorAs a merchant, your credit card payment process can be frustrating. Some companies charge the highest fees, while others perform their part with the least effort. And even if you’re dealing with both sides of the transaction, you’ll find that completing a quick and easy transaction isn’t always the case.

So how do you get your credit card transaction done without getting ripped off? Credit card processors must know what they’re doing (or at least try to), so they make it easy for customers as well as merchants to enjoy a clear and straightforward process. Purepay aims to make sure your card processing is done right.


If you’ve been thinking that credit card transaction processing fees are too high, here’s your chance to change that. If you want to avoid being a victim of double-charging or some other mistake, using the right processor will do so for you.

Purepay will help coordinate your transactions between multiple financial institutions, ensuring that if something goes wrong, there will be no confusion as to what happened and who is responsible for it.

Not only we help to avoid problems by making sure all relevant information is available to both parties involved, but the way we help with the transfer process means there are fewer manual steps involved in moving funds from one place to another — and therefore less stress on your wallet.

You can get started by letting us know what type of payment services you would require for your business model. We have served many different types of merchants and always ensured quality and price. Purepay cuts out all the hidden fees and our sales specialists ensures that each fee and term is communicated to you.

Send us brief information about your business to receive tailored pricing for your payment processing needs – simply click HERE!