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A customer comes to the checkout counter in your store and sticks a credit card into the chip reader to pay for a purchase. The terminal displays a message saying, “Do Not Remove Card.” The terminal asks the customer to key in his or her PIN. The terminal shows the transaction approved or denied, and tells the customer to remove the card. Or maybe your customer swipes the card and ends up with the same results. What’s happening from the time the customer inserts/swipes to the moment the payment is approved? It may seem like a simple process where the terminal sends the transaction to the credit card company, and the credit card company sends back the approval, but there are a lot of steps in between. How the Process Works  The terminal sends transaction details to the payment processor. The payment processor is not the same as the bank that issued the card. The bank that issued the card belongs to a network of banks that issue the same kind of cards, like Visa or Mastercard. Th

Not everyone who starts a business has had coursework or experience in finance. But every business deals with money, and it pays to have well managed and organized finances. If you’re a business owner who feels a little overwhelmed by dealing with finances, Merchant One created this guide for you as a primer on basic business accounting terminology and essential documents. Let’s get started. Basic Accounting Terms  For those without an MBA or other formal business training, business accounting buzzwords can sound like a foreign language. Let’s break down the language barrier: Expenses  Expenses are basically everything you need to pay to keep your business running. This means all operating costs, including rent and utilities, inventory, software and technology, production costs, payroll, and taxes. Total or Gross Revenue This is the total amount of money that you earn from running your business. It is your inflow of cash, the sum of everything you’ve received from custo