Card payment - What is a card payment?
A card payment is the use of a credit or debit card to make payment for a sale of goods or services
Accept card payments both online and in person with the Debitoor x SumUp connection. Try it now.
In sales transactions, a card payment can be made in order to transfer money to purchase a service and/or products. Essentially, most sales transactions today can be completed with a card payment, although some locations and establishments do not have card payment capabilities.
When are card payments used?
Credit cards were first introduced in the US in the 1920s. Early credit cards were designed to be used exclusively at certain shops or locations. American Express was the first to launch the credit card as we know it today.
Credit card payments became more widely accepted throughout the years and today, some cities and even countries are working towards becoming paperless - so relying only on card, mobile, or virtual payments instead of cash.
Card payments can be used in any location with the proper set up. In-person card payments require a card reader, which is a device that essentially “reads” the information contained in the card’s magnetic stripe or microchip.
What are the card payment alternatives?
Credit card and debit card payments are not the only options for making payments. As you likely know, other possibilities for payments include:
- Cash in the form or paper money or coins
- Bank transfers
- Barter/trade (as a form of compensation)
While bank transfers have been used widely in recent years and are still used widely, the growth and reach of the internet and online payment solutions have made it possible to use direct debit and card payments online instantly.
How is a card payment processed?
When a card reader or payment device reads the information provided by swiping the magnetic stripe, or inserting the end of the card with the chip into the card reader combined with the cardholder’s PIN code.
The details that are read from the card provide all the information necessary for withdrawing money from the associated account. If there are sufficient funds in the account connected to the card, then the payment will be successful. If there are insufficient funds, the payment will fail.
Once the transaction is successful, the money will be deducted from the cardholder’s account and credited to the seller’s account.
Card payments and Debitoor
Debitoor invoicing & accounting software offers a variety of options when it comes to card payments. With the SumUp integration, card payments can be accepted either face-to-face with the SumUp card reader, or online via the virtual terminal.
This means that it’s possible to create and send an invoice to a customer from your Debitoor account via email and receive payment instantly online. We also offer solutions for direct debit transactions and of course banking details can be added to your invoices for bank transfers.