Why do credit card processor companies exist?

Visa and MasterCard were originally associations of banks, and as such, let the banks handle the issuing of cards (issuers) and the acquiring of merchants to accept the cards (acquirers). read more

When a sales representative shows up at your door to try to sign you up for credit card processing, or when you interact with a Web site (such as Square) to investigate a deal, you are dealing with the merchant service provider, which can be an arm of a bank or a smaller independent company. read more

Credit card processors love to advertise that they offer “wholesale” merchant accounts, but such a thing does not exist. Advertising wholesale rates is just a marketing ploy. Interchange fees are the closest thing the processing industry has to wholesale rates, and interchange fees are the same for all processors. read more