credit card processing center - where do our payments go?

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credit card processing center - where do our payments go?

Postby Cucumber » Tue Jan 20, 2009 11:11 pm

Where and how do credit card processing centers process our payments? I always do online bill pay and now that I think about it I'm not sure where the mailing address is. Do they have to have most of the processing centers in Delaware and Wyoming because they are 'credit friendly' statess? Having them sent to a different state that falls under different laws might make the credit card companies not be able to apply the same rules [cough] usury [cough] that those states offer right? :money:

Now that's on my mind I'm dying to know what these credit processors actually do at these facilities and how big they are. When payments are claimed to be lost in the mail by the credit card co is the error by the post office or maybe its error by these credit card processing centers which gotta be automated and huge.
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Postby bozell » Wed Jan 21, 2009 2:52 am

credit card processing centers are big magical warehouses filled with little elveswho process the payments for the good boys and girls and for the bad ones they throw your payments in the trash so the CC will slap you with a big late fee

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Postby magyar1045 » Wed Jan 21, 2009 8:09 am

Some, if not most credit card processing centers are more or less in your geographic area. I live in Sacramento, CA.
Some of my credit cards' processing centers are in southern California.
One in Dallas, Texas.
One in Salt Lake City, Utah
Two of them in Phoenix, Arizona.
Only one - company headquartered in Georgia, has a Georgia billing address.

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Postby fffresh » Wed Jan 21, 2009 2:57 pm

Cucumber I believe what you're referring to are credit card payment processing centers which is where your payments go. Most often when one refers to a credit card processing center they are talking about places that process the card transactions, such as your purchase or return.

Credit processing is a competitive business since the transaction fees can vary greatly among companies and on factors such as your sales volume and industry. A flea market vendor that processes a few thousand annual in payments will be paying much more to the processing centers than a nationwide retailer doing billions annual in transactions.

Still there is not much negotiating room on the transaction fees which go to the credit card companies, which average 2% to 4% per transaction. There has been much revolt among merchants recently who want to overturn this rule and have permission to negotiate credit card processing fees directly with the credit card companies themselves.

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Postby Mogul of Pineapples » Wed Jan 21, 2009 7:50 pm

Credit processing is a big business. The worst part (For the merchants) are that they get charged a different rate depending on what type of credit card is used.

Let's say you have a rewards card - it would be a higher percentage than a regular credit card. Then let's go a step further and say you have a rewards cards which are marketed as the highest level (there are other threads on here today actually about the Visa Signature, Mastercard World Elite, etc) all of those cards than have a higher rate than the higher rate reward cards.

With all the new categories of cards being added on you end up having 6 or 7 tiers or more of escalating transaction fees the credit card processing center is going to charge you as a merchant.
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Postby 1bootcamp » Thu Jan 22, 2009 1:09 am

My payments go to local addresses here too.

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