Wireless credit card processing occurs when a merchant facilitates the purchase of items by customers with credit cards by using some sort of wireless device. The device may be a machine built specifically for the processing purpose, or it may be a cell phone, computer, or other wireless device outfitted with the capability to read credit cards. In a matter of seconds, wireless credit card processing allows the transfer of credit card information from the merchant to the processing company to the bank that issued the card. This process allows merchants without access to a phone line to take credit card orders.
Many consumers choose to do much of their shopping by using credit cards, which are loaned out by banks and other financial institutions and allow for the purchase of goods without any immediate payment. Payment is made later on by customers, usually in monthly installments that total up all credit card purchases and any interest charges attached to the card. Wireless credit card processing allows vendors outside of the typical store setting to take such payments.
This is especially useful to mobile vendors who would lose out on sales without the ability to offer wireless credit card processing to customers. Many consumers would be otherwise unable to pay for the goods offered by vendors without using a credit card. As such, the service comes in handy for vendors stationed outdoors or somewhere not serviced by a telephone line, which is the normal way in which credit card processing takes place.
The process of wireless credit card processing begins with the merchant swiping the customer's credit card so that the processing machine can read the pertinent information. Much like a cell phone service, that information is beamed to a satellite that relays it to the credit card processing center. This information is then relayed to the bank or institution that offered the credit card, which checks the information to see if the card is valid and if there is enough money in the account to cover the purchase.
Assuming that the credit card company validates the purchase, a confirmation number is relayed back through the channels to the vendor, who approves the purchase. The entire process takes place in a matter of seconds, although that time may be affected by the wireless service in the area. Finally, the bank thatissued the card remits payment to the checking account of the merchant within a few business days. This completes the process of wireless credit card processing.