Merchant Services
Payment Processing
Business & Vendor Financing

Meeting Traditional & HighRisk / Restricted Merchant Needs


The Payments Industry Structure

HOW IT ALL WORKS .... a "thumbnail" educational overview

The Payments Processing Industry, is a highly regulated and extremely well organized and designed system, comprised of multiple players and component parts.  Understanding  how it works is a convoluted and confusing study.  However, in the most simple terms, it is all about ....'Getting  Paid ', and how you handle the incoming electronic purchases and payements coming into your business operation.

Getting  Paid__This is Your  Primary  concern.  You have a business to run, and that is your focus.  A major tenet in the business world, is that: YOU, as the merchant or business owner, should always strive to:  'Make it EASY for your  customers to pay you, their money '.  This is simple common sense...  Because if you fail at this ... they'll go to your competitor.  Ultimately, be aware that the customer can control your level of success, exercising his choice of : Where / How, and  'If' ... he will buy from, and spend his money... with you ....or your competitor.  

  •      So,  it is the wise merchant who stays aware of consumer spending habits and trends....the psychological mindset driving them..... and adjusts his payments acceptance policies accordingly to maximize efficiency and profitability.

The INDUSTRY PLAYERS.....'CAVEAT EMPTOR'.....( Buyer Beware )

The FED and the Banks__are behind all payments, and are involved and included in all FORMS of payment.  They are the drivers and settlers of all monetary transactions.  In business,  you will have your local business bank...where you keep and run your normal business operational accounts. 

  •      In the Payments Industry,  the ability to accept the differing forms of electronic payment, is granted to you via the assigning  and establishment of a Merchant Account.  It is underwritten, approved, assigned, regulated and provided to you by an industry Acquirer / Provider bank.  Incoming purchase and payment funds, route through your Merchant Account, and are then deposited into your local business bank account.

The Payment Program Providers & Associations__these are the people who design, develop and operate the differing programs and electronic payment options  that are available to you,  These people are contracted with the Acquiring Bank, to provide you the 'optional access'  to their specific programs.  

  •      All of these programs, are simply differing payment methods,  that allow you to "Make it Easy",  for your customers to spend their money with whatever form...that the customer frequently uses and prefers.  ( here's a don't want to limit his choices, and now days 70+% will want to pay by Debit or Checking  Card ).  You should want to give your customers every opportunity to  pay you their money !

The Transaction Processing Networks__these are the "techie" people behind the computerized systems utilized in the micro-second 'capture' , transfer and settlement of funds between the banks  These people are  contracted with  both the differing Program Providers and the banks.  You might recognize names like First Data, TSYS, Elavon, EVO, Paymentech, Global....these people are in this category.  

  • During the processing of transactions, the funds for the purchase and payment,  are captured and deducted from the customer's account, and  then electronically routed and deposited directly into your Local Business bank account. There are differing levels of expertise and competency with all these networks, but all function and are regulated by the FED, and appropriate associations.

The ISO/MSP__these are the people  ( like FCD  ) who function as  the contract sales and marketing arm for the Acquiring / Provider banks.  Their focus is to develop, build-out and grow both the  bank's, and their own,  portfolios of active Merchant  Accounts.  Generally, they will structure their business as either a "Captive" or an "Independent" Agency.

 These people are typically your Point of Entry or 'Gateway'... into the Payments Industry.  

  •  "Captive" Agents work for and represent a single  Acquirer Bank.  As such, they are restricted and limited to promote and offer only those programs provided by that specific Acquirer bank.  

  • "Independent" Agents (like FCD) are much broader based and flexible, as they represent and are contracted with multiple  Acquirer / Provider / Issuer  Banks,  Transaction Networks and Program Providers, who are capable of providing the merchant with a broader,  more diverse 'buffet' of solutions covering the payments spectrum , thus granting their customer base more choice.

     You should be aware that the average, entry level rep in this industry, will last less than six (6) months, typically having been hired to 'slam dunk' unsuspecting merchants by any 'dog and pony show' imaginable, in order to get the merchant's name on the dotted line.  Many of these people receive minimal industry training, and are not willing, nor equipped, to meet the study and educational requirements to become a seasoned professional.  In fact, if you have read and even rudimentarily understand this section of our web site, you are well ahead of most of the Reps that will approach you with offers to entice you for your payments business.

Check Us Out

FCD is a business relationship focused 'YOU Centric'  provider of soluitions in the Payments Processing and Business Capital Industries.

As a long term solutions Provider,  we bring a unique perspective to our clients via our transparency and continued involvement, as your on-going and primary 'GO TO' contacts at every level of the system, on a 24/7/365 basis.

We are all about a WIN-WIN agenda from the outset, and we seek out clients who share this same outlook.

We invite you to review our site and contact us with any questions and concerns regarding these industries, or to discuss and help you develop any programs or ideas you are entertaining or may have in mind going forward.