OFFSHORE Credit Cards and processing

Credit card is a form of paymode which was named so after a tiny plastic card was issued to consumers. This card entitles its owners to purchase services and goods based on owner’s assurance that he would pay for the services and goods that he purchased.  

The place from where the card was issued provides users credit to take money to pay a merchant. Credit card and charge card are entirely different. Credit card necessitates consumers to pay their due in instalments.  

After a credit provider approves an account, credit cards can be obtained. After which these cardholders use these cards to purchase goods. After a purchase, cardholder assures to pay the card issuer. Cardholder then signs a receipt along with card details indicating the amount to be paid. Merchants check these cards using electronic verification device to ensure the validity of the card.

Every month, these cardholders are sent a report indicating purchases that he/she has undertaken along with outstanding and total amount remaining. The issuers of credit cards waive interest rates if amount is paid fully each month.

Credit cards are really a benefit for customers since they are convenient way of pay mode. In addition to this, credit cards are convenient for several customers as it avoids the requirement to take cash for each and every purpose. After six and twelve months, higher rate would be charged from credit card users.

If cardholders miss to pay the particular month’s payment, then an interest of about 20-30% would be stipulated. This would result in payment that would be burdensome for cardholders to pay.

In case of merchants, transactions made from a credit card is most secure and reliable than any other payment forms since issuing bank entrusts to pay the dealer immediately after the authorization of the transaction irrespective of consumer’s non-payment on credit card.

In order to secure a sale, credit cards serves the purpose. Several fees are charged from merchants for acceptance of credit cards. A discount price of one to two percent might be charged for each transaction they obtain through credit card.

The parties involved are as listed here:

Cardholder: Card user who uses this card to buy services and goods. 

Card-issuing bank: The organization which issued credit card for cardholder. Cards that are issued by processors/banks to card users in different countries are termed “offshore credit cards”.

Merchant: Individual who accept credit card pays for services or products sold out to cardholder.

Acquiring Bank: Organization that accepts payment for services or products from cardholders those are due to merchant.

Merchant account: financial institution with which vendor deals with.

Credit Card organization: Is an organization of banks which issue cards like: American Express, Discover, MasterCard, Visa, and so on.

Transaction network: Is a system which implements electronic transactions. The transaction networks include: VisaNet, Concord EFSnet, Nova, NDC Atlanta, Nabanco, and Cardnet. 

Transaction steps are as listed here: authorization, batching, clearance and settlement, funding, and chargebacks.

Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.