In the event that you need to have a system on your website for online credit card payments, below are some steps you should take.
Internet Merchant Account (IMA)
In order to take online credit card payments that are connected with a bank account, an application must be made with a bank, or other sources, for an Internet Merchant Account. Many locations have other MA providers who offer the same type of account, as a bank.
If you accept “card not present” payments, currently, you are still required to have an Internet Merchant Account Identification in order to take online credit card payments.
Terminology
Acquirer: This is the name of the bank. They confirm that funds are available from the purchaser, authorize the transactions, and take the funds from the issuing credit card company. Once this step is completed, the funds are transferred to your merchant account.
Acquirers Fees: A fee charged by the merchant account holder (bank) to your account for processing the transaction.
Merchant Account: This is your account.
Issuing Bank: This is the name of the institution that made the payment, Visa, MasterCard, American Express, etc.
Interchange Fees: A fee charged by the issuing bank for the transaction.
Upon signing your service agreement for your IMA, you will be told about fees that will be taken for transactions, just as a bank account.
For security reasons and government legislation your bank will demand that you have rules in place on your website.
Choose a Payment Service Provider (PSP)
You will also need a PSP, also known as gateways. Generally, they are responsible for the web page that customers go to for payment submission.
• They add a cashier (a virtual one) to your web page. They gather the payment details as well as screen for fraudulent accounts.
• They offer different types of packages and rates. A common difference between them is who will provide hosting for the pages.
Some payment service providers also provide internet merchant accounts and vice versa.
Payment-Processing Businesses
These businesses combine IMA’s and PSP’s services. Their application processes are usually less strict than the banks. Resulting in a quicker account setup time. A disadvantage though, with some of these businesses is payment time and fees. Customers will be directed to their website, so payment to you can take up to sixty days. As well, their fees may be higher.
Google Checkout and PayPal
Three advantages to using either Google Checkout or PayPal, is that as a rule, you receive payment instantly, and both companies are known worldwide. In addition, they have flexible integration choices and pay now buttons.
An added benefit to Google Checkout is that they provide a payment guarantee. This guarantee protects 98% of all the transactions at the checkout. While PayPal offers a wide range of services for different types of businesses and allows the customer to stay on your website.
Having an online credit card payment option is fairly easy. You have choices with regard to integration ease, cost, and flexibility.
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