Credit Card Processing

From : website101.com.

A merchant account is a special account with a bank that is a member of the Visa and MasterCard associations. Such a bank has been certified by Visa and MasterCard associations and can provide you, the merchant, with all of the services related to your merchant account. Once your merchant account is setup and "live" on the credit card system, you can accept credit cards from customers generally as follows:

* A customer presents their credit card for payment .

* Using their credit card number, you submit an electronic request to the processing network for "authorization to capture funds" from the cardholder's credit card account in the amount of the purchase. Traditionally, one would submit this request by swiping a credit card through an electronic transaction terminal provided by the bank.

* The processing network immediately receives your electronic request and determines if the cardholder's account is valid and if the funds are available. If they are, the processing network returns an electronic response to your terminal or computer. This response is called an "authorization code", and is your guaranteed authorization to capture the funds. Typically, this code is a six-digit number. The transaction and its associated authorization are stored in a "batch", where other transactions for that day reside.

* You print a receipt for the customer using the electronic terminal or your computer and the customer signs the receipt. As far as the customer is concerned, the transaction is complete. As far as you the merchant are concerned, there is one more step to complete the transaction.

* At the end of your business day (usually), you submit a final request to the processing network to go ahead and "capture the funds" that you obtained authorizations for during the course of business that day. This is called "settlement" or "settling your batch". This request is also submitted using the electronic terminal or your computer. The processing network immediately receives your response electronically and determines if the capture amounts contained in your request match the authorizations for each item. If so, the request is granted and an "Accepted" response is returned to your electronic terminal or computer. A settlement report can be printed showing the grand totals by card type (Visa, MasterCard, American Express, Discover, etc) for the settled batch. Note: any corrections to your batch, such as voiding a transaction, must be made prior to settlement.

* Within 48 to 72 hours (usually), the funds associated with the batch you settled are deposited electronically into your business bank account. Typically, the discount rate you pay to your merchant account provider are deducted from the deposit before it transferred to your bank account, resulting in a "net deposit" of funds.

* At the end of the month, your merchant account provider will mail a statement to you, detailing the credit card activity for the month and the associated fees you have been charged for such.

Top 7 ClickBank Credit Card Processing Advantages

Here are seven good reasons why you should consider ClickBank.com as your credit card processing solution and merchant account alternative.

1. Accept Credit Cards Without a Merchant Account

If your products are digital (such as electronic books or software), you can use ClickBank to process credit cards and on-line cheques. The cost is $49.95 upon signup and $1.00 per transaction plus 7.5% of sales.

2. Start Your Own Affiliate Program

With ClickBank, you have your own built-in affiliate program. You decide what commission (from 1% to 75%) you would like to pay your affiliates.

3. Receive Free Advertising

You receive additional exposure through free listing on the ClickBank website and through the search facilities of other websites, such as CBMall.com.

4. Obtain Referral Commissions

Even without applying for ClickBank credit card processing, you can earn referral commissions on thousands of ClickBank Marketplace products.

5. Eliminate Sales Tax Problems

Since you must agree to sell your product to ClickBank for resale, ClickBank becomes the retailer responsible for collecting sales taxes -- not you. ClickBank will not be subject to sales taxes in most jurisdictions. ClickBank is registered for European Union (EU) purposes and adds the appropriate Value Added Tax (VAT) to each applicable transaction.

6. Accept PayPal

ClickBank now accepts PayPal as a payment method. According to PayPal.com, PayPal has "more than 86.6 million accounts in 56 countries and regions ...growing by 83,000 a day."

7. Automated Product Delivery

After purchasing your product through ClickBank, the customer is redirected to a "thank you" page. This page may contain information about how the customer can download your product, thus automating your product delivery.

RESOURCE BOX:

J. Stephen Pope, President of Pope Consulting Inc., has been helping clients to earn maximum business profits for over twenty-five years.

To learn more about accepting credit cards, visit http://www.yenommarketinginc.com/creditcards.html

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