Merchant Account Vending – Accept Credit Cards
One of the most useful ways that a vending company can use to make more profit is by using a credit card service. This method of payment does not allow the company to charge for items offering all payment options for the vending machine.
Vending companies are always looking for ways to make more money, and one of the ways that they find this money is through credit card payments. These payments are sent automatically to the company, and this allows them to better manage their finances.
The way that the vending machine work is that it only accepts the money that is paid with a credit card. When a customer pays with a credit card, the company receives an electronic transaction from the customer’s bank.
The company’s software then verifies that the customer has purchased the item and sends the payment to the company.
The company then deducts the amount of money from the customer’s account and credit the amount of the money from the merchant account of the owner of the vending machine.
How Credit Card Companies Places a Temporary Hold on Your Account
When the credit card company places a temporary hold on your account when you purchase an item from the vending machine until the funds are transferred.
Here are the process on how it works when you use your credit card.
- You buy a Chip Bag from the vending machine
- You use credit card to tap on the Credit Debit Card Reader
- Bank or Credit Card Company places a temporary hold on the Chip Bag ( $1.25 ), reason for this if you are out of credit or max out your card after buying the Chip Bag ( $1.25 ) , bank or credit card will know that the available balance is less than what is stated
- The owner of the vending machine with the debit credit card reader submits all the credit card transactions in a “batch transfer” and the $1.25 is deducted from your bank account.
- If you make a $1.25 purchase right after buying a chip bag you will see a both the actual charge and the temporary hold.
- Once the owner of the vending machine gets the $1.25 after a day then you will see that the temporary hold of $ 1.25 will be removed, this will again normally take about 1 to 2 days.
Sometimes it is best that you just use Coins or Bill to buy products from the vending machines.
This is the reason why the charge is called an authorization, since it is actually a debit rather than an actual credit limit.
I Paid Twice For a Chip Bag In The Vending Machine
Did you know vending machines charge you twice for an item?
The bank will hold a charge for you and you thought that you are charged twice, but after the next day the bank will return the other hold charge on your bank statement.