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A Credit Card Processing Overview for Uplifting Your Business

A Study By PayCly Best Credit Card Processing Why It Is Essential To Accept Credit Card Payments For Uplifting Your E-business

PayCly is one of the best payment service providers globally, offering its merchants all kinds of payment solutions, including credit card processing, international payment gateway, high-risk payment gateway, and merchant accounts for many industries.


As per Statista, around 22.8 billion credit, debit, and prepaid cards were in circulation worldwide in 2019 and are expected to reach 29.31 billion by 2023.

According to a recent article by CNBC based on the Federal Reserve Bank of Newyork report, the number of credit cards exceeds 500 million in the USA even though the total population of the USA is around 335 million. According to data from the credit bureau Experian the average number of credit card accounts per cardholder was 3.84 in 2020.

Credit card users are highest in developed countries, and developing nations will soon catch up with them. As per the World Bank, Canadians in the percentage of credit card users are highest in the world, where 82.58 % of people use a credit card. Israel comes on 2nd with 75% and furthermore Norway with 70.5%, Luxemburg (69.8%), Japan (68.38%), USA (65.6%), Hong Kong (65.42%), Singapore (48.9%) and Malaysia (21.31%).

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According to a Statista analysis, a sizeable portion of consumers worldwide - over 42% - use credit cards to make online transactions.

Regionally speaking, credit or debit cards are more commonly used in America than any other payment type, and the trend is the same in Europe.

According to JPMorgan, card transactions are Malaysia's 2nd most preferred online payment method, with 29% of all transactions,

In Singapore, 58% of people make online purchases and prefer to pay from alternative payment methods rather than conventional ones.

We can say that, nowadays, it is practically difficult to conduct business, whether offline or online, without accepting credit cards.

The Mindset of the Credit Card Users

Several studies have indicated that people spend more when paying with a credit card (plastic money). A two decades old study published by MIT's Drazen Prelec and Duncan Simester in Marketing Letters stated that shoppers spend up to 100% more when using their credit cards to pay instead of cash.

In the study, researchers utilized fMRI to concentrate on three distinct brain regions: two linked to reward and pleasure and one to a range of negative emotions (pain, unpleasantness, rejection).

According to Drazen's research, the ability to use a credit card directly activates reward brain networks, particularly those involved in anticipation and craving. When participants made a purchase, these areas lit up with cards but not with cash. Unexpectedly, "these were the regions that had historically been associated with usage of addictive substances," including cocaine and amphetamines.

That is not to imply that people are addicted to credit cards in the same way that narcotics can be addictive, but rather that credit cards appear to induce individuals to "put a foot on the gas pedal," making them more eager or ready to spend money on goods and services. It's conceivable that individual variations in how quickly people tend to become addicted to items may be connected to improper or excessive usage of credit cards.

The Phycological Effect of the Credit Card on Users

The Journal of Experimental Psychology: The American Psychological Association published a report titled Monopoly Money: The Effect of Payment Coupling and Form on Spending Behavior. In which they articulated a phenomenon called "payment coupling". It might be painful for a person to purchase something with cash because they are aware of the price right away. However, when using a credit card, there is a delay between the time of purchase and the time of payment, which makes the price seem less significant.

Customers can concentrate on the advantages of the purchase rather than the cost because purchases made with a credit card have been emotionally decoupled. Therefore, using a credit card to pay makes it more challenging to concentrate on the price or finish a more logical cost-benefit analysis. However, we might focus on the transitory pleasure of the acquisition.

What Makes People Spend More With Credit Cards?

Let's say a shopper wants to shop and has 200 dollars in her account. But you saw an offer on a store or merchant app or web giving 20% extra discount on a credit card but with the condition that offers can be avail only after you spend 300 dollars. It's most probable that the shopper will spend 300 dollars to avail of the offer.

Another illustration: a person who went for a lovely supper with his lover has budgeted $100. He will carefully select what to order if he only has $100 in cash to ensure enough money to pay for his meal and tip. With a credit card, there isn't an immediate penalty for exceeding his spending limit, making it easier to do so. He will keep the pleasure up instead of spending as it's our mind's tendency.

Merchants' Benefits of Accepting Credit Card

We have seen credit card penetration worldwide and the preference for credit cards over other payment methods. More than 30% of people abandon shopping if the merchant doesn't accept credit card payments. The tendency to spend more with a credit adds more feathers to the merchant's cap. Shoppers have the potential to spend 100% extra with a credit card.

Accepting payment from a credit card can boost a merchant's sales by 100%. An online business must accept payments in as many possible ways, but the most crucial is a credit card.

A credit card enables you to accept any international payment. A credit card is the easiest way to make international payments as a customer only needs to allow the already available function from the bank's app, which takes only a few seconds.

By accepting credit card payments, you'll build a reputation for your company's trustworthiness in the market. The cardholder's attention will be drawn, and their likelihood of trusting your company will increase if the logos of the credit cards you take are shown on your website or application.

Receiving payments through credit cards almost eliminates the possibility of dealing with issues related to fraudulent or bounced checks. You won't have to take the chance of losing a sizable sum of money on bounced checks or waste time trying to find the consumer to get payment in full for the products or services.

How Can a Merchant Accept Credit Card Payment?

To accept a credit card payment, a merchant must obtain a Merchant Account from a bank or independent credit card processing company. Basically, the bank is very limited in providing the merchant account. Its procrastinating process takes months that too only if you have a long list of complete documents. You will not be facilitated with a merchant account by the bank if you fail to give any of the asked documents or financial history. The bank also can deny providing you a merchant account if you are a high-risk business. However, Independent Credit Card Processing Companies like PayCly can help you by providing a merchant account with fast approval and a limited number of necessary documents. If you are a high-risk merchant, then payment processing companies can offer you the high-risk merchant account or high-risk payment gateway that facilitates you to accept credit card payments.

What Is a Credit Card Processing Company?

Credit card processors, also known as merchant service providers, provide a credit card payment solution that allows you to accept credit card payments at your business.

A credit card processing company enables you to accept credit card payments by synchronizing the many services involved in the process. The credit card network, issuing banks, and your own merchant bank account are a few of these.

How does Credit Card Processing work?

In a few seconds, how a credit card processor works. Let's understand it step-by-step.

  • The customer uses their credit card to make a payment, and the payment information is shared on the merchant website or app with the payment gateway.
  • The payment processor receives and gathers the payment data before sending it over the phone or the internet to the acquiring bank. It performs several security checks to ensure the authenticity of the information.
  • The credit card processor first adds a layer of security and encrypts the payment information, next sends the encrypted data to the card network.
  • The card network checks and then passes the payment information to the consumer (issuing) bank.
  • The consumer bank is responsible for confirming that the cardholder has enough money or credit available to perform the transaction. The bank might carry out security checks to make sure the transaction is authentic. The transaction is then approved or declined, and the outcome is communicated to the credit card processor.
  • If the transaction is approved by the consumer bank's verification processes, the funds are transferred from the client bank to the vendor's and then enter the settlement process.
  • The settlement is the last step in the procedure, and depending on the card network used for the transaction, it may take several days. Settlement is the formal transfer of the transaction amount, excluding any applicable processing costs, from the consumer bank to the merchant bank.

How to Select the Best Credit Card Processing Company

It is not easy to pick a credit card processing provider as more than a thousand companies are available. Many factors have to be considered before choosing a suitable payment processor. The ideal credit card processor for a business owner provides trustworthy, secure, and cost-effective service that you seldom have to worry about.

Before selecting a credit card processor, you must ensure the availability of a few key components. You need to check the following features with high risk gateway, to name a few.

Pricing Method

There are two main pricing methods for credit card processing. One is fixed, and the other is interchangeable.

  • With fixed pricing, the rate for each transaction is fixed, regardless of the credit card that the customer uses.
  • For interchange pricing, you have to pay the amount charged by the credit card company plus the fees of the processor.

Nowadays, the ideal credit card processor provides both these options to choose from. You may choose any payment method as per your business type or monthly volume.

Security and Fraud Prevention System

To prevent yourself and your customers from any fraud, you must ensure that your credit card merchant account is secured with top-notch fraud prevention technology. To secure the transaction, it must comply with AVS, CVV checker, PCI DSS compliance, fraud scoring, geolocation tracking, 3D Security, multi-factor authentication, and other fraud protection features.

Industry Support

Suppose a merchant is doing business of his choice and want to accept credit card payments from his customers. So he approached the world's most famous payment gateway service provider to provide him with credit card processing, but it was denied because it does not support that industry. Reasons may be many: maybe the bank did not consider the merchant a premium one, perhaps the bank is not upgrading your credit rating, maybe the merchant does not have a long financial history, etc. What's the outcome? Did the big name help? Answer in no. The world's famous payment service provider is unsuitable and useless for a merchant and his business if it cannot provide the services the merchant wants. Here independent payment service provider like PayCly comes into the picture. PayCly is best because of its services, industry support, and all other state-of-the-art features, not by blowing its own trumpet. PayCly provides credit card processing and merchant accounts to numerous industries, including E-commerce Industry, Forex Merchant Account, Hospitality Industry, Casino Merchant Account, Tobacco and E-cigarette Industry, Travel Industry, Gambling or Betting merchant account, IPTV or OTT industry, Fantasy Games Industry, iGaming Industry, Adult Toys Industry, Tech Support Industry, Escort Merchant Account, SMM Booster Industry, Dating App, Industries involved in the other Service Sectors.

PayCly specializes in high-risk merchant accounts and offers many services, including credit card processing, merchant account, and payment gateway to high-risk industries.

Additionally, look into the fund withdrawals, chargeback row prevention and resolution procedures, approval times, contract terms, 24*7 customer assistance, data exports, ease of use, innovative technology, and easy integration.


In the article, we have discussed almost every aspect of why credit card payment acceptance is critical for a business. With a credit card payment solution, a merchant can really boost his business.

Credit card processing comes in a variety of sizes and shapes. Each processor offers a different set of services, contract terms, and pricing structures.

PayCly is one of the best credit card processors that offer services almost everywhere, supports endless industries, and provides lightning-quick transaction processing times and cutting-edge security with their international payment gateway solutions. Due to their handling of sensitive data, sensitivity toward fraud, and anti-money laundering procedures, PayCly has become the best in the category.

We wish you luck.

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