Key Participants in Credit Card Processing

A good first step in understanding the process is to review industry terms for the key participants:

• Cardholder. A cardholder is the customer, or consumer, who is using the card for payment. The cardholder could be either the owner of the card or an authorized user.

• Issuing bank. An issuing bank is the entity that issued the credit card to the cardholder and is responsible for authorizing the transaction. If a transaction is approved, the issuing bank sends funds to the merchant bank, which in turn bills the card owner through a monthly credit card statement.

• Merchant. A merchant is a business that accepts credit card payments from customers for its goods or services. These include in-person, online or phone payments.

• Merchant bank. A merchant bank, also known as an acquiring bank, maintains the merchant account where the funds from credit card transactions are deposited. Some merchant banks act as payment processors in the card transaction. Others rely on third-party payment processors to manage the payment details.

• Payment processors. A payment processor, or merchant services company, helps manage the transaction process with the merchants, banks and card networks. In addition to helping authorize transactions and ensuring the transfer of funds, some payment processors also offer the hardware and software required to accept card transactions.

• Card networks. Credit card networks such as Visa, Mastercard, American Express and Discover are responsible for the infrastructure that allows the transmission of credit card details between the merchant bank and the issuing bank. Credit card networks have rules for the use of their networks and set interchange fees for their services. Source

Protecting Your Business  From Holiday Payment Fraud

Smart Tips from John Haire at Bankcard Processors...

The holiday rush is a wonderful time for business — but it’s also when fraudsters work overtime. With more transactions, online orders, and busy staff, scammers see opportunity. That’s why this time of year is the most important for merchants to stay alert and take simple steps to protect both your business and your customers.

Here are a few ways to keep your payment processing safe this holiday season:

1. Stay Alert to Suspicious Transactions

Watch for unusual orders — large purchases from new customers, mismatched billing and shipping addresses, or multiple cards used by the same person in a short period. When in doubt, verify before you process.

2. Keep Your Equipment Secure and Updated

Make sure your credit card terminals, POS systems, and online gateways are running the latest software updates. Outdated equipment can leave your business vulnerable to breaches or data theft.

3. Train Your Team

Your staff is your first line of defense. Remind employees not to override fraud alerts, skip signature checks, or process transactions when something feels “off.” Encourage them to trust their instincts.

4. Watch Out for Phishing and Account Takeovers

During the holidays, scammers often pose as your processor, bank, or even a familiar vendor. Never share login information, passwords, or account details over email or text — and contact your processor directly if something looks suspicious.

5. Reconcile Daily and Review Chargebacks Quickly

Catching discrepancies early can prevent larger issues later. Daily reconciliations help you spot unauthorized transactions, and timely responses to chargebacks protect your revenue.

At Bankcard Processors, we take your security seriously — from PCI compliance to fraud monitoring and data protection. If you’d like help reviewing your setup or tightening your fraud prevention measures before the holidays, I’m here to help.

This season, let’s keep your business merry, bright, and secure.