Merchant Services Credit Card Processing
For merchant services, the paper is then mailed in to the acquiring bank which processes the transaction. The most common, way to process credit cards is through a point-of-sale (or POS) terminal. This is an electronic device that is either connected to a phone line or the Internet, and it connects to the acquirer for near instant approval. These machines usually batch at the end of the day. The final way to process a credit card transaction is through a virtual terminal. This is how all Internet transactions are completed. When you are on a website and entering in your credit card information to make an online purchase, that is a virtual terminal.