Rick Case Insurance Agency Blog
Businesses need payment processors. Cash transactions just don’t hack it anymore. Everyone has their own new “cashless” method of transacting. People pay with credit cards, debit cards, Paypal™ or some other virtual method of transferring value. Here are some payment processes and the pros and cons that come with them.
Cash is Still King
The most traditional payment processor is still the government through cash. Money, as we learned in civics class, is just a substitute for the value that the state provides. It is a medium of exchange that makes it easier for us to exchange goods and services.
This is included here so as to illustrate how alternatives to cash function in relation to how the default, cash, work.
Credit Cards and Debit Cards
Debit Cards are the easiest equivalent to cash. All a debit card really is is a piece of plastic that can substitute for cash when making our day to day transactions. When we swipe our debit cards money is taken from our accounts with our respective banks.
A Credit Card is slightly different since what it does is charge an account we have at the bank. The account is a credit account that states that we have some amount of credit with the bank. For example, if the credit limit is $1000 then the user can charge up to $1000 on the card.
In both cases, the card processor facilitates the transaction usually an internet transaction. This means that a person can use his credit card or debit card in the UK even if his bank is actually in the U.S.
Visa and Mastercard are two of the most common types available. They link with the users’ bank and the bank of the merchant so they can do business.
Paypal and Bitcoin
Paypal is the most common form of internet-based payment processor. Since its inception, there have been others like it. But they generally follow the same pattern of using an internet-based intermediary to process payments not unlike how Mastercard or Visa do business.
Bitcoin is new and unfortunately not well understood. It is believed that it is the future because it is not bound by countries or national currency.
At Rick Case Insurance Agency, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (405) 722-5556. Get your free quote today by CLICKING HERE.