Different types of credit card processors
Need a Credit Card processors? There are several different types of companies you can turn to for credit card processors.
Banks: The banks you use for your business finances should be the first place you contact. Banks allways can be the easiest source to turn to for credit card services; many offer service packages for businesses that include merchant services. Most banks don’t process credit card transactions themselves, though.
Instead, they outsource credit card processing to a third party credit card processors. It can be tough to get approved from this channel, though. Banks are likely to scrutinize your business more closely before deciding whether or not to accept your application.
3-rd Credit Card Processors: Third party credit card processors dedicate themselves to handling credit card processing. As such, they take care of different aspects of the transaction process such as authorization, billing, reporting, and settlement.
For example, Independent Sales Organization:
An independent sales organization (ISO) is essentially a registered credit card merchant broker who represents one or more third party credit card processors. They set up and service credit card merchants, but do not do the actual card processing. ISOs are less selective than banks, but that comes at a somewhat higher price. They are also not strictly regulated the way banks are, so be particularly vigilant when evaluating potential suppliers.
Example: Financial Service Providers: MasterCard and Visa require you to establish a merchant account through an intermediary. However American Express and Discover give you the option of applying directly to them.
Association Small business and trade associations often offer credit card merchant processing at discount prices. They are a particularly good resource if companies in your industry historically have trouble attaining credit card merchant status.