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Retail Credit Card Processing

The Next Big Thing in Retail Credit Card Processing

Retail Credit Card Processing

Get an insight into retail credit card processing procedures and how this can affect the way your business transactions are made now or in the future.

There are a good number of consumers who pay with either debit or credit cards and if your business isn’t accepting card payments then you could be losing customers left and right as a majority of people who pay in-person are so used to the idea of cashless purchases and transactions.

But in taking this route how much will it cost you to invest in a merchant that specializes in retail credit card processing, who can provide you with the proper tools and systems to cater to your clients and customers that choose to make digital or non-physical payments?

What do you have to prepare to be able to process credit cards? What is retail credit card processing and what does this mean for the future of retail services?

What is credit card processing? What would you need?

Credit card processing through a professional retail merchant service provider gives you the capability to card payments within your store or restaurant, albeit this is entirely different from online credit card processing which allows you to accept credit payments virtually despite both entailing the transfer of money from one bank account to another. 

When merchant services for retail start to process credit and debit cards they’ll need to ensure that a few things need to get set up first to avoid any extra expenses that may incur as a consequence of not having the necessary tools and systems placed on the appropriate setting. First things first, you’ll need a TMA which is an abbreviation for a traditional merchant account as it wouldn’t be the best decision to transfer it straight to your business bank account considering it may not be secure. 

You need something that can act as a ‘holding tank’ something that can hold in your transacted funds till everything is processed through the appropriate channels to avoid the hassles of disputes. What kind of equipment would you need to help you with your credit card processing?

  • POS (point-of-sale system)

  • Credit card machine

  • Virtual Terminals

What kind of costs do you need to be aware of? 

There are three categories of costs that you would need to be aware of which are fees, rates, and equipment costs:


There are four common “rate” pricing models namely, flat-rate pricing, interchange-plus pricing, tiered rates, and subscription-based rates. Flat-rate pricing is when a payment processor charges a fixed fee for both credit and debit card purchases; interchange-plus pricing is based on the interchange fee of the card that’s being used since a small per-transaction fee is usually added to the transactions; Payment processors, depending on the type of card and how it is presented is normally fee dependent and is arranged by the volume of transactions in a business day. 


There are a ton of fees that you need to keep in mind when processing credit cards. Transaction fees are charged by the payment gateway and credit card processor, as each of the companies involved needs to make money for the service that they were providing. The type of fees that you would need to keep an eye on is interchange fees, markup fees, and service or assessment fees.

Equipment costs

Considering how much retail credit card processing will cost it is important to take note of the possible equipment expenses. You’ll find that some credit card processing merchants offer free card readers while others will have equipment for sale or will even give you the opportunity to rent out the necessary equipment like base-level credit card terminals, a magnetic-stripe card reader, and an EMV that has the ability to use chip cards.

The kind of future you can expect from retail merchant service providers and the future they may bring  

From point of sales to fraud system intrusions, there are a bunch of things that you need to consider if you want to slowly save up the funds of your business with every transaction. As time progresses business owners and customers want fast and simple transactions that will allow them to save time by wrapping up retail payments more securely. 

When you’re deciding between traditional POS systems or the latest technology that handles payments virtually, you need to think about how your current customers feel and how they would like to pay. Are you looking for a POS provider in merchant services for retail transactions? 

Then look no further because we here at Savvy Merchant have just what you need to keep your business running. Contact us today to get your hands on the latest POS systems and tools.

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