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Chapter 10 - Merchants & Consumers

Before taking the plunge, aren’t you the least bit interested in learning more about the bank card world? Unless you are a banker, there are probably many things to learn regarding the industry. How card processing came about, who processes the actual transaction, what influences processing costs. These items will be covered in the next four chapters.


You, me, and most every adult in the United States is in a scandalous affair. With their credit card! What are the 5 key benefits that attract consumers and merchants alike? How can this knowledge help your sales efforts?


There are only two types of people in the processing word. Those who use credit cards and those who accept them. Many times one person can be both! We will take a look at the needs, concerns and issues of each, and see how one influences the other.


Our final topic of conversation is in introduction to how payment cards are processed. We will track the dollars from consumer to merchant, and demystify the process. Thus armed, you will better understand the value which you will bring to the merchant, from both a financial and service perspective.

iProcess - Knowing the Payment Industry

Chapter 9 - Transactions, Consumers, and Merchants

Every sale has five basic obstacles: no need, no money, no hurry, no desire, no trust

- Zig Ziglar

Consumers, Merchant’s and the ‘Consumption Cycle’

These five benefits outline the reasons behind the popularity of one simple activity - pulling out a credit card and making a purchase.

Again - more purchases are made today using a plastic card than by using cash. The ratio is almost a staggering two to one in favor of card based transactions.

Consumers use cards to…um…consume.

This cycle of consumption is ongoing. Simple sales occur on a frequent basis, more complex sales less frequently. Yet every type of sale can occur on a credit card.

Let’s look at how a sale, or better yet purchase, occurs

Purchase. A sales that takes place via the use of a credit card

It’s time to discuss three things in play…the consumption cycle, the consumer, and the merchant.  This is what each is and how they interact with one another.

Consumers love credit cards

The Consumer: Any person, place or thing lacking products or services necessary to function and must obtain them from another person, place or thing is a consumer. You are a consumer. So is your spouse, aunt or friend. So is Disney Land. So is the government. We all must acquire products and services from others in order for us to survive.

Merchants love credit cards, sell processing like a proThe Merchant: Any person, place or thing supplying the products and services necessary to function for other persons, places or things AND requires card processing abilities is a merchant. Merchants today are tied to card payment ‘acceptance’ as most consumers prefer this as a means to make purchases. It is also a key concern item for most businesses. As such, there are many concerns and even fears associated with changing existing processors.

The ‘Consumption Cycle’: Consumers do one thing VERY well. They consume. Food, cars, clothing, gas, houses, trips, you name it…they consume it. Merchants are in business to satisfy the needs of the consumer. As long as consumers create a demand for a product, a merchant will provide a solution in the form of a product or service.

The take away…merchants and consumers are here to stay, and each affects the other. You should understand a potential merchant IS ALSO a consumer when YOU are selling a service or product. Make certain you speak to the needs, concerns, and issues of your customer. Take time to understand them before offering solutions.


Since we know there is a need for merchants to accept credit cards, how are merchants set up to accept payments? How do consumers get a credit or debit card? Who makes money when a card transaction occurs?

Getting a card is simple. Go to the bank, . . .

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iProcess - Sell Payment Processing Like a Pro!