Credit Card Authorization Rules
For business owners, having the ability to let customers use a credit card for purchases is an important part of growing any enterprise. More and more people are relying less on cash and personal checks, turning instead to credit cards for safety and convenience. In order to authorize your customers' credit card purchases, you must follow a few basic rules.
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Set up a Merchant Account
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Establishing a merchant account is the first and most important rule for credit card authorization. The companies, such as local banks, who authorize credit card payments communicate with merchant accounts in order to verify purchase information. A business can establish a merchant account at their local bank for a small fee.
Acquire Credit Card Processing Equipment
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When a customer pays with a credit card, you must swipe the card through a credit card processing machine. This machine is often available through banks when setting up a merchant account. Businesses can also purchase these machines online.
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Signature
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Once the purchase amount is entered and the transaction sent through the machine, a receipt must be printed off. The receipt must then be signed by the customer and then approved by the merchant bank account and credit card company. The receipt must then be copied and given to the customer, with the business retaining a copy.
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References
- Photo Credit credit card image by feisty from Fotolia.com
