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Originally Posted by Godsmack
Hi :-)
But i see so many paysites using paycom as their CC proccessor.. i am confused now
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LOL thats understandable, many get confused on the particulars.
I'll try to explain a bit better
In its simplest form - A third party processor allows vendors to process cc's via sub accounts under their main merchant account. They take on part of the burden of managing your account and its risk (aka underwriting) for a % of your profits. They accept payments from the bank on the vendors behalf then pay out to the vendors from there.
A direct merchant account takes the middle man out. The bank or its risk management team handle the underwriting and pay out directly. They do not take a percentage of your profits but do charge a basic rate (which is considerably lower than 3rd party rates).
Paycom is a well respected 3rd party processor and a good tooth cutting arena. Once a vendor gets a nice 6 month transaction history and decent monthly volumes they can consider working directly with a bank to improve their profit margins.
I hope this helps and good luck with your business