Credit Card Processing Options for Online Merchants
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Posted On :
Mar-17-2010
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Article Word Count :
818
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As an online business owner, you know how vital it is to begin accepting credit cards as a payment option for your business. With today’s merchant accounts offering more and more options to match their customers’ unique needs, and with fees associated with merchant accounts lower than they were even a few years ago, there’s little reason NOT to sign up for an account.
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As an online business owner, you know how vital it is to begin accepting credit cards as a payment option for your business. If you’ve operated for any length of time on the ‘net, you’ve probably noticed how successful companies are that offer customers the option of paying for their purchases with credit cards, rather than other forms of payment.
Credit cards offer consumers a wealth of benefits, included added safety, and can dramatically increase your profits, as well as your customer base. But today’s online retailers have a stark reality facing them: fail to offer credit cards as a payment option, and your business may soon cease being profitable.
With today’s merchant accounts offering more and more options to match their customers’ unique needs, and with fees associated with merchant accounts lower than they were even a few years ago, there’s little reason NOT to sign up for an account. If you’re interested in doing a little background research into the benefits of establishing an account for your business, here’s a little background on Internet merchant account options to get you started on your way.
As a business with an online presence, maybe you thought establishing a merchant account just wasn’t worth it. Especially for businesses with relatively low daily sales volumes, this is a common and often costly misconception. The fact is, today, merchant account providers are looking for your business, and providing the services and options you need, regardless of the size of your business or its sales volume. Fees and restrictions have also been significantly reduced, making accounts affordable and easy to use for all business types.
As an online merchant, you’ll probably be considering one of two types of Internet merchant accounts: real-time systems or delayed processing systems. Both offer different advantages to different types of businesses. If you operate an online store in addition to a retail establishment or mail order or telephone sales, your merchant account provider may be able to bundle those options into a money-saving package, so be sure to ask if bundles are available through the provider you select.
Real-time systems are the best solution for larger businesses that expect to due a high sales volume on a daily basis. These systems are completely automated, relaying on software to perform all of the transaction and verification details. Real-time system use a program called a weblink or gateway to gather credit card information once it’s entered into your web store.
The weblink transmits the account information, as well as other transaction details, such as transaction amount, to the credit card issuer, which determines whether the credit card being used is valid, and whether or not the card’s available balance is sufficient to cover the transaction cost. The weblink also assigns an ID to the transaction, and serves as an added level of protection against fraud by verifying and validating credit card account information.
In some cases, the weblink may use an address verification system, or AVS, to ensure the address given on the billing information page matches the address associated with the credit card. Once the transaction is approved, an approval code is transmitted to the merchant account and an online receipt is printed. At the end of the day, or at a time predetermined by the business owner or merchant account provider, daily sales are tallied and all daily fees are deducted, and the final remaining balance is transferred to the bank account associated with the merchant account.
The second type of account commonly used for Internet businesses is the delayed processing account. This type of system does not rely on a gateway or weblink. Instead, credit card information is entered into the website as before, but rather than transmitting the information instantly for verification and approval, the credit card data and transaction information are stored.
At some time during the day, the business owner or his or her representative accesses the data and then manually enters the credit card and transaction information into a virtual terminal, accessed via a computer. Since this type of account needs the intervention of a person in order to process the transactions, it’s a good solution for businesses that expect to have a lower sales volume, which can be handled in the day-to-day operations of the business. Virtual terminals are also used by mail order and telephone ordering systems, where a customer service representative or sales associate gathers sales and credit card information via telephone or order forms.
No matter which type of account you choose, accepting credit cards is a wise move, especially if you do any business over the Internet. Studies show more than 90 percent of online shoppers use credit cards for their transactions, making this a costly trend to ignore. With lower fees and fewer account penalties and restrictions, establishing a merchant account today can mean a better business for your tomorrow.
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Article Source :
http://www.articleseen.com/Article_Credit Card Processing Options for Online Merchants_13733.aspx
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Author Resource :
Karen Zabel is a freelance writer who writes about credit card processing and businesses that offer that service such as North American Bancard .
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Keywords :
North American Bancard,
Category :
Business
:
Business
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