What is “payment processing,” anyway?

or, What happens when someone swipes their card at my shop?

The world of payment processing is often viewed as “unnecessarily complicated,” but it doesn’t have to be that way.

Every time a card is swiped at your shop, a process takes place to ensure you are paid for your goods and services, and that’s what makes PayProTec so helpful. Consider us the middle man, helping move the process along, so you get your money, and the customer gets their product.

Let’s say you own a coffeeshop, and over the course of your day, you sell around $100 worth of coffee. Every time someone swipes a credit card at your PayProTec terminal, a process occurs, ensuring the customer has sufficient funds to pay for their coffee.

This process is routed and handled by PayProTec, who sends data from your terminal to an acquiring bank. The acquiring bank is a registered member of a card network that accepts, or “acquires,” transactions on behalf of the cardholder for you, the merchant. The bank will then request a transaction from your customer’s bank or credit card service, based on information received from the cardholder’s bank.

The customer’s bank either declines or approves the transaction (depending on funds available). This information is given to PayProTec, who communicates it back to your terminal.

The result is then sent to you, in the form of approval or denial, and your barista is able to hand over the latte to the customer.

But why is this even necessary?

At PayProTec we “tokenize” information to keep it safe. Tokenizing is when sensitive data is replaced by a randomly generated code that can only be accessed by an authorized party.

For example, if you use your card at a store, your card information will be sent to the processor and locked in a vault, and a different code will be used to represent your card.

This means hackers would receive the representative code, and not your actual card information.

Sounds great! When do I get my money?

Sadly, unlike cash transactions, credit card transactions don’t put money in your pocket immediately. However, PayProTec exists to ensure you get your money quickly and easily.

PayProTec will deduct the charge from the customer’s bank account, confirm that the funds clear, and deposit the money into your account. Most of the time, this process takes between 24 and 48 hours. PayProTec is dedicated to getting you your money as fast as possible.

So is there a catch? How does PayProTec benefit?

Because the process is so complicated, any payment processing company will take a certain percentage of the money you make throughout the day.

At PayProTec, we inform our merchants based on an effective rate. Remember that $100 of coffee you sold? Based on how much you make, we will charge between 2 and 3.5%, meaning you get around $98.