data guardian and credit card processing

With EMV cards however, a significant amount of data is exchanged in real-time between the credit card issuer (Bank of America, M&T Bank, Citi, Chase, etc.) and the payment terminal to confirm the transaction is not fraudulent. Processor (TSYS, First Data, etc.) for processing with the card brands and bank networks.

With a magnetic stripe card, the sensitive credit card number and expiry data information, also known as track 2 data, is transferred to the payment terminal and then the back end Technology that has been used worldwide since the beginning of credit card acceptance. Standard for processing credit and debit cards based on chip technology that is significantly more advanced than the magnetic stripe What is EMV?ĮMV stands for Europay MasterCard Visa, which are the organizations that created the EMV, or chip card, standard. American Express acts as its own acquirer, which is why in many cases merchants have experienced different, and usually more expensive, pricing structures for American Express. American Express, on the other hand, does not work with acquiring banks. Visa, MasterCard and Discover all works with banking institutions, and as explained above the banks act as the acquiring arm for the merchants. The main card brands in the United States are Visa, MasterCard, American Express, and Discover. So, when someone is “selling credit card processing,” they’re selling what is known as an acquiring bank account or, in simpler terms, a bank account that underwrites the risk of processing credit card payments and eventually transfers, or settles, the funds to the merchant’s business bank account. So, there is an inherent risk to the seller of accepting a plastic card, instead of cash, as that person may not actually have funds, the card could be fraudulent, or any other circumstance resulting in nonpayment to the merchant.Īs a result, banking institutions need to underwrite the risk for the merchant to accept credit cards. Sounds a bit silly when you think of it that way, huh? Of course, the presentation of a credit card is the promise that the purchaser has funds available to him or her that can pay for those goods. When you break it down, a seller of goods (the merchant) is providing some sort of good or service in exchange for a swipe (or dip) of a plastic card. When you think about an actual credit card transaction, you need to think about what is occurring at a very rudimentary level. So, what exactly is one “selling” when they “sell credit card processing?” As a merchant, there is an inherent risk in accepting credit cards. What is an Acquirer/Acquiring Bank?Īn Acquirer or Acquiring Bank is the banking institution that sells credit card processing. They are likely an acquiring bank or, similarly, a reseller of an acquiring bank. Any company who claims to be a “Processor” not listed above is, very simply, lying. These companies are referred to as “Processors” as they have the complex connectivity to the back-end card brands (VISA, MasterCard, Discover, American Express, etc.) and the acquiring bank networks. In the U.S., there are nine (9) credit card processors: TSYS, First Data, Global Payments, Vantiv, Mercury Payments, WorldPay, Elavon, Heartland and Chase Paymentech. So, before we begin, it’s important to understand a few core concepts of the credit card industry. This article will help build an understanding of a layered payments security approach that includes both EMV (chip card) technology and encryption. Although chip cards are a step in the right direction, EMV is only a piece of the complex payments security puzzle. After 2014, the “Year of the Data Breach,” media outlets and so-called payments experts were adamant that chip card security, also known as EMV, would solve the security issues surrounding the payments industry.

Data guardian and credit card processing