Credit Card Merchant Account

Third Party Credit Card Processors

If you?re a small business or just starting out, you may not feel ready for a merchant account. Obtaining a merchant account is not usually considered difficult, however, for a newly established business it isn?t always feasible to run out and a merchant account immediately. Starting a business is often costly and risky to begin with- you do not need to go out and spend money on optional features (like a merchant account) until you know whether or not your business is going to succeed, and whether or not you?ll have the need to accept credit cards from customers.

Did you know there are other options and alternative methods for allowing your customers to pay you with credit cards? Companies called ?third party credit card processors? do not require their customers to create merchant accounts, and yet they can be used to allow small or new businesses the ability to accept credit card payments from customers.

Why Worry about Accepting Credit Cards at All?

It?s important that you are able to accept credit card payments from customers, however, even if you aren?t feeling up to getting a traditional merchant account right now. It?s been proven that businesses that except credit cards experience higher sales than those that do not accept credit cards. In fact, some companies have reported an increase of 50 to 400% in sales once they began accepting credit cards as a payment method. It also helps to establish a professional image- and for some potential consumers, it generates a feeling of trust. (?If the business is established enough to accept credit cards, they?re a quality business that I should shop with?!)

Home based businesses and online businesses can take advantage of a third party credit card processor instead of going directly with a merchant account if they wanted to. It allows a business to determine how many customers will make purchases with credit cards, as well as determine if more or higher sales come as a result of accepting credit cards as payments.

A third party credit card processor offers real-time processing online, online virtual terminals for entering manual transactions, no maximum limits for processing amounts in most cases, and the ability to set up recurring billing.

One of the advantages of using a third party credit card processor over establishing a merchant account is that instead of paying a transaction fee or a monthly fee, you pay a percentage of the sales (from 2% to 15%), and only when you actually make sales. Some merchant account providers require that you pay a monthly fee- even if you aren?t making any credit card sales. By starting out with a third party credit card processor, you can judge how many customers might use the option to pay with credit cards before you go through the process of applying for a merchant account and getting everything set up.

How do third party payment processors work?

Once you have an account with a third party payment processor, you?ll create links to your products that allow customers to order and pay with credit. The links send the customer to the third-party processing company?s server, and they handle the orders for you. Payments are processed by the company, and the sales are credited to your own business- less the third party processor?s commission. You receive your money from the third party processing company at established payment intervals. Typically, money owed to you from the third party credit card processing company is deposited automatically into a checking or savings account that you have set up for your business and linked to your account with the third party processor.

This article has been provided by Creditor Web. Creditor Web has the articles and other credit card processing resources to help you choose the right provider

Labels: batch_credit_card_processing, card_credit_heartland_processing, credit_card_processing_equipment, offshore_credit_card_processing, on_line_credit_card_processing

Credit card processing - how credit card works

Nowadays, 80% of consumers use credit cards to pay for products and services online. If you don't have credit card payments facilities for your business, you are losing customers and profits. Customers prefer credit cards because they are safe, secure and easy to use.

The process that will check customer's credit card number, expiry date and other transactions related with credit cards is known as credit card processing. It can be achieved manually but this process is really difficult and more time consuming. The best option is to automate it. This can be done by using different types of software, buying or leasing other people's processing services or by writing a program/script.

There are different types of credit card processing software that makes merchant account more secure and improves processing speed. There three main types of online credit card processing are virtual terminal, simple integration method and advanced integration method.

A virtual terminal was used before the Internet age. A simple integration method makes direct link between your site and bank system and you can directly accept transactions through Internet. With the help of advanced integration method, you can link your system to more multifaceted systems.

The main benefits of these various systems comprises the ability to show all of your information from the internet without making manual transactions impossible, setting up recurring billing cycles and protection against fraudulent transactions. The businesses that accept credit card payments will improve their sales and profits exponentially. Accepting credit card payments makes a business look more professional and established. Credit card processing ensures optimal customer service and convenience.

The author presents the website on credit card processing http://www.123cheapcreditcardprocessing.com/ . It covers meaning of credit card processing, types and benefits of credit card processing. You can visit his site on http://www.getcheapcreditcardprocessing.info/

Labels: credit_and_debit_card_processing, credit_card_processing_equipment, credit_card_processing_online_payment, electronic_credit_card_processing, merchant_account_credit_card_processing

Ecommerce 101 Online Credit Card Processing

Back in 1998 (through 2000 or so), I worked for a small company (called PaymentNet / then Signio) that handled online transactions. Verisign later purchased this company, and the product team I led integrated the "client" - the portion that took the credit card information and sent it to our servers for processing. The product name is Payflow Pro - maybe you've heard of it?

I'm going to limit this discussion to Visa / MasterCard credit cards -- Amex and others operate slightly differently.

First, there is the bank that the consumers credit card is attached to. That bank is called the "acquiring institution" ... it handles the "credit" you have on your credit card.

Then, there is the merchant bank. That's where the business opens up a "merchant account" to be able to accept various forms of credit cards.

The merchant account is connected to another company called a "processor". This "hidden" layer is the company that actually moves the funds from the acquiring institution to the merchant account (that process is called "settlement"). The processor also handles talking to the acquiring institution to make sure that the customer has the funds available (a process known as authorization).

Some well-known credit card processors are First Data Merchant Services (FDMS). Nova and PaymentTech.

Sitting on top of the processor is one of two primary systems either a swipe-card terminal (like those you see in Wal-Mart) or a "gateway" company that does basically the same thing, but over the Internet - that's what Verisign Payment Services and Authorize.Net do.

Note that the waters are even muddier in many cases, for example, Wells Fargo can act as every piece of the puzzle in some circumstances.

So, what actually happens when you purchase something at Wal-Mart using a credit card?

a) You place your items from your "basket" onto the counter and scan them. the checkout system provides a total.

b) You swipe your card through a "terminal", which reads the # off the magnetic stripe.

c) Wal-Mart dials their processor, and asks if you have the funds available on your credit card. The processor talks to your bank (the acquiring institution). If funds are available on the card, they are marked as "held" in your account (an authorization) - if not, the transaction is declined (yuk). Authorizations that are never settled tie up your credit card funds for a period of time, usually 10 days or so.

d) At the end of the day, Wal-Mart marks all the transactions they want to receive funds for, and submits them to their processor in a "batch". The processor then contacts the acquiring institutions and transfers the funds to your merchant bank - which may make the funds available instantly (in a day or two), or may hold them for a while, or may hold the funds in a "rolling reserve" (keeping some funds held back in case a consumer fights the transaction, called a chargeback).

In the online world, replace the cash-register with an online shopping cart, and the electronic credit-card with terminal with called a "gateway" such as Payflow or Authorize.Net. the process is basically the same, with slightly more complexity.

My site, CommerceStore.com handles the entire "shopping cart" and storefront process, including talking to the gateway. It knows how to talk to every major gateway (online credit card terminal) available. In addition, we have direct relationships with various banks that can help you open a merchant account in the US or in Canada, and the system works with PayPal. There's a whole lot more, including AutoResponders, built-in affiliate system, etc.

As a merchant, all you really need to know is that all services purchased through CommerceStore.com will work together. Be careful going "a-la-carte" with ecommerce credit-card services: if the gateway you chose can't talk to the processor your bank uses, or your software can't talk to the gateway, you're hosed. That situation was MUCH more common (things not working together) back in the mid/late 90's than it is today. However, most brick and mortar banks (like your local branch) still dont have a clue about online credit-card processing if they attempt to sell you a leased terminal, its best to run the other way and find a solution from reputable online source.

Nick Temple is a former engineer for what is now Verisign Payment Services. He can be reached at his website, http://www.nicktemple.com. He is part-owner of the CommerceStore.com complete ecommerce solution.

Labels: credit_card_processing_equipment, credit_card_processing_quickbooks, ecommerce_credit_card_processing, merchant_services_credit_card_processing

Online Credit Card Processing - How to Accept Credit Cards - Ecommerce 101

Back in 1998 (through 2000 or so), I worked for a small company (called PaymentNet / then Signio) that handled online transactions. Verisign later purchased this company, and the product team I led integrated the "client" - the portion that took the credit card information and sent it to our servers for processing. The product name is Payflow Pro - maybe you've heard of it?

I'm going to limit this discussion to Visa / MasterCard credit cards -- Amex and others operate slightly differently.

First, there is the bank that the consumer’s credit card is attached to. That bank is called the "acquiring institution" ... it handles the "credit" you have on your credit card.

Then, there is the merchant bank. That's where the business opens up a "merchant account" to be able to accept various forms of credit cards.

The merchant account is connected to another company called a "processor". This "hidden" layer is the company that actually moves the funds from the acquiring institution to the merchant account (that process is called "settlement"). The processor also handles talking to the acquiring institution to make sure that the customer has the funds available (a process known as authorization).

Some well-known credit card processors are First Data Merchant Services (FDMS), Nova and PaymentTech.