The Authorization Process

POS hardware terminals are keypad devices (like a telephone) equipped with a built-in magnetic card reader and modem. Retail – Storefront Merchants needing a credit card authorization must slide the magnetic strip of the card through the card reader, input the amount, expiration date, and zip code (cardholder address verification), and prompt terminal to dial out (toll-free) to obtain an authorization code. The terminal will display either an approval code, “card declined” or “call authorization center message.” The authorization process normally takes about 15-seconds.

POS virtual terminals work similarly to hardware terminals, but function as Client or Host. The client version is a software program residing within a merchant’s computer. The Host version is an Internet address where a merchant can go to complete a transaction. Virtual terminals can be manual requiring the merchant to input the transaction data from his or her physical business location, or automated whereby the cardholder inputs the data at a merchant’s site (see https://www.payready.net).

The Clearing and Settlement Process

Merchants running transactions throughout the day must close out the day’s credit card totals, AKA Batching. This process initiates the electronic movement of funds from a cardholders account to a merchants account.

POS Terminal Downloads

Each terminal type is unique and must be programmed with specific applications prior to a merchant being able to run transactions. For example, network processor protocols vary among each provider. Card One merchants are placed on the Vital Processing Services Platform. Also, there are a wide range of business types. A standard retail store may not require tip adjustments like a restaurant would. Card One insures all POS terminals are properly downloaded and ready to run transactions.