Credit card processing has its own dictionary, and the jargon scares a lot of people off. It shouldn't - the fundamentals are simple once someone lays them out plainly.
The vocabulary that matters
- Interchange - the base fee set by the card networks and paid to the issuing bank.
- Merchant discount rate - the total percentage a business pays per sale.
- Residuals - the recurring income an agent earns from the accounts they refer.
Why it's a real business
Because processing fees recur every time a merchant makes a sale, the people who place and service those accounts earn a slice month after month. That's what turns "selling card machines" into a residual-income business you can build from anywhere.