A brief description of what must be done to help your company be able to accept credit cards.
Enlarge ImageCredit cards are almost prolific these days. You can’t survive as a business unless you can accept them as a form of payment. Though it is easy for consumers to accept credit cards it isn’t quite so easy for the company accepting the credit cards. Between the legal requirements and the technical requirements of implementing a credit card processing system, accepting credit cards can be a confusing and stressful process. However, a credit card processing company should be able to help overcome many of those barriers.
Find a Merchant Account
A merchant account is an account that allows a business to accept credit cards. It is just a special account that acts as an intermediary account between the payment gateway and the business. Though most merchant accounts act the same way the services that the payment gateway provides can be extremely varied.
Before you even start to look for a merchant account or start processing credit cards, you need to define exactly what your needs are. Below is a list of question to help get you thinking.
- Will you take orders over the phone?
- Will you be taking orders on the Internet?
If so, you will need an ecommerce merchant account.
- Will you be taking orders off line or both?
- How much money will you be processing?
- How advanced do you need your equipment to be?
- What credit cards do you want to accept?
- What other payment options do you want to be able to accept?
Will you be accepting checks?
- How long do you plan to be in business?
This list is just a few items to get you started. It is so important to analyze your business because each merchant account will give you different a different mix of features and cost structures. If have at least some basic knowledge about your business when you start to look for merchant accounts you will be miles ahead of the competition.
Because there are so many different options you will want to look at several different companies to find the right fit for your company. Request lots of information and talk to the sales people. Not all companies will post all of the information that you need on the internet. After you find a company that you like wait a week to think about it and make sure you feel good about it before you commit to their merchant account because chances are you will not change merchant accounts soon.
Justin Grover – to request information about merchant accounts and other payment gateway services at Verus Card Service.
By 10x Marketing
Saturday, May 22, 2010
Credit Card Processing
The credit card processing system allows stores and other businesses that sell products and services to receive almost immediate compensation for their sales. This invisible system is largely responsible for the seemingly endless growth of our economy. Many individuals around the world take advantage of the benefits that credit cards have to offer. Most individuals in the United States make use of at least one credit card. Many have more than this. Apart from offering convenience in purchases, these nifty little pieces of plastic offer safe, secure transactions and limit the need to carry large amounts of cash. If you have been interested in obtaining a credit card, but would like to learn more about how they work, we will outline a simple history of the credit card, as well as the steps required in the credit card processing procedures.
Credit lines have been used all throughout history. Evidence of credit has been traced to the ancient Babylonians. The simple barter systems used by so many of our ancestors were types of credit lines. However, in the early 1900’s, a precursor of the credit card was created by numerous businesses in order to assist individuals with purchases that they were unable to afford outright. This continued until the 1950’s when the first true credit card was created by The Diners Club of America. A few years later, Americans were introduced to the ever-popular American Express.
As time progressed a few new credit cards (VISA, MasterCard and Discover) entered the market. These credit cards established the basis of the fees and charges that are associated with the credit cards of today. In addition to establishing guidelines for credit, a new system emerged. This system would allow stores and other businesses that sold products and services to individuals to receive almost immediate compensation for products that were sold using a credit card. This is what really got merchants rolling when it came to accepting various types of credit cards. The credit card company would simply pay the merchant for the purchase, and deal directly with the individual that made the purchase for repayment.
Credit card processing is a very simple process as far as you, the customer, is concerned. The merchant at the store at which you are making your purchase simply slides your credit card through a machine that reads it. It will add the amount of the purchase to your credit card balance. Immediately thereafter, you will be required to sign the credit card slip to approve the purchase, and all is done.
The following steps identify the key steps involved in the credit card processing procedure "behind the scenes":
1) First, the credit card machine will read the magnetic strip that is on the back of the card.
2) Once the strip has been read, it will transmit electronically the information to the company that authorizes the request.
3) The authorization involves the bank that issued the credit card, as well as the credit card company.
4) It will be determined whether the individual has the funds necessary to make the request. If this is confirmed, then a deposit is made to the merchant’s bank.
5) Within a very short period of time, the purchase will be confirmed on the credit card account of the individual, who is responsible for payment of the charge, according to the terms of the bank that issued the customer the card..
The actual behind the scenes steps are a lot more detailed than outlined here, involving the merchant’s card processing company, the credit card company, the processing company and the customer’s bank that issued the credit card. A lot of software is involved, as well as computer programming, fraud prevention techniques and authorization procedures that take place instantaneously with the customer’s purchase.
But this invisible processing system is largely responsible for the seemingly endless growth of our economy.
Michael Rupkalvis manages The Transaction Group website. The site provides information about ecommerce credit card processing and offers merchants low fee iinternet merchant accounts, along with excellent customer service.
By Michael Rupkalvis
Credit lines have been used all throughout history. Evidence of credit has been traced to the ancient Babylonians. The simple barter systems used by so many of our ancestors were types of credit lines. However, in the early 1900’s, a precursor of the credit card was created by numerous businesses in order to assist individuals with purchases that they were unable to afford outright. This continued until the 1950’s when the first true credit card was created by The Diners Club of America. A few years later, Americans were introduced to the ever-popular American Express.
As time progressed a few new credit cards (VISA, MasterCard and Discover) entered the market. These credit cards established the basis of the fees and charges that are associated with the credit cards of today. In addition to establishing guidelines for credit, a new system emerged. This system would allow stores and other businesses that sold products and services to individuals to receive almost immediate compensation for products that were sold using a credit card. This is what really got merchants rolling when it came to accepting various types of credit cards. The credit card company would simply pay the merchant for the purchase, and deal directly with the individual that made the purchase for repayment.
Credit card processing is a very simple process as far as you, the customer, is concerned. The merchant at the store at which you are making your purchase simply slides your credit card through a machine that reads it. It will add the amount of the purchase to your credit card balance. Immediately thereafter, you will be required to sign the credit card slip to approve the purchase, and all is done.
The following steps identify the key steps involved in the credit card processing procedure "behind the scenes":
1) First, the credit card machine will read the magnetic strip that is on the back of the card.
2) Once the strip has been read, it will transmit electronically the information to the company that authorizes the request.
3) The authorization involves the bank that issued the credit card, as well as the credit card company.
4) It will be determined whether the individual has the funds necessary to make the request. If this is confirmed, then a deposit is made to the merchant’s bank.
5) Within a very short period of time, the purchase will be confirmed on the credit card account of the individual, who is responsible for payment of the charge, according to the terms of the bank that issued the customer the card..
The actual behind the scenes steps are a lot more detailed than outlined here, involving the merchant’s card processing company, the credit card company, the processing company and the customer’s bank that issued the credit card. A lot of software is involved, as well as computer programming, fraud prevention techniques and authorization procedures that take place instantaneously with the customer’s purchase.
But this invisible processing system is largely responsible for the seemingly endless growth of our economy.
Michael Rupkalvis manages The Transaction Group website. The site provides information about ecommerce credit card processing and offers merchants low fee iinternet merchant accounts, along with excellent customer service.
By Michael Rupkalvis
Disadvantages of Electronic Payment Systems
Electronic payment systems include credit and debit cards, online banking and electronic cash. Most of us commonly make use of electronic payment facilities. Do we know the disadvantages of electronic payment systems? To know them, read on…The transfer of funds from one party to another over electronic media is known as electronic payment system. The different approaches to electronic payments include, card payment, mail order and online payment. Online transactions are a daily activity for almost everyone today. With the introduction of the Internet, online transactions became easy. Most of the big product and service companies made their network presence prominent and started interacting with their customers over the web. Online shopping soon became popular. With financial institutions, walking on similar lines, people around the world began performing their financial transactions through the Internet. Credit and debit cards became a commonplace feature and gave impetus to the electronic payment systems.
While most of us prefer the convenience in payments that the electronic payment systems have brought about, some dislike the idea of electronic money. They feel uncomfortable in performing online transactions. Though only the positive change brought about by the e-payment systems is highlighted, we cannot ignore the disadvantages of electronic payment systems. One must be aware of the privacy and security concerns raised by electronic payment systems.
Disadvantages of Electronic Payment Systems
Most of the online banking sites as also the online financial transaction sites require you to open an online account with them. You need to register to the institution in order to be authorized to perform money transactions with them. This involves a username and a password, which implies the need of password protection. You also need to maintain an account per organization, which can make it bothersome for some of you.
For secure online transactions, the site that hosts your account should follow strict security policies. If the passwords are susceptible to being hacked, it can mean a serious financial loss for you. Banks or financial institutes, which maintain your personal information, cannot afford to expose it to hackers. There is a potential risk of your personal and account details being stolen.
One of the most severe disadvantages of electronic payment systems is that of identity theft. The available security measures can prevent the sensitive information from being exposed. But it is important to use virus protection or firewalls for your computer. It is important to carry out money transactions over a secure server.
There is a great risk involves in the theft or the losing of the smart cards. In case the cards fall in unsafe hands, there is a danger of the expenditure of your entire bank balance. There are measures to inform the concerned authorities about the loss of the card. But, the time between losing the card and informing the authorities is critical. Unauthorized users may carry out transactions in your name during this period of time.
Mostly, electronic cash is based on cryptographic systems. The transactions are encoded by means of numeric keys while the transaction details travel across the net. Though electronic payments are resistant to forgery, the keys are vulnerable to attack.
This was not to discourage you from taking to electronic payments. It was rather to make you aware of the disadvantages of electronic payment systems. While we are moving towards a paperless environment, we are inviting issues related to electronic security.
By Manali Oak
While most of us prefer the convenience in payments that the electronic payment systems have brought about, some dislike the idea of electronic money. They feel uncomfortable in performing online transactions. Though only the positive change brought about by the e-payment systems is highlighted, we cannot ignore the disadvantages of electronic payment systems. One must be aware of the privacy and security concerns raised by electronic payment systems.
Disadvantages of Electronic Payment Systems
Most of the online banking sites as also the online financial transaction sites require you to open an online account with them. You need to register to the institution in order to be authorized to perform money transactions with them. This involves a username and a password, which implies the need of password protection. You also need to maintain an account per organization, which can make it bothersome for some of you.
For secure online transactions, the site that hosts your account should follow strict security policies. If the passwords are susceptible to being hacked, it can mean a serious financial loss for you. Banks or financial institutes, which maintain your personal information, cannot afford to expose it to hackers. There is a potential risk of your personal and account details being stolen.
One of the most severe disadvantages of electronic payment systems is that of identity theft. The available security measures can prevent the sensitive information from being exposed. But it is important to use virus protection or firewalls for your computer. It is important to carry out money transactions over a secure server.
There is a great risk involves in the theft or the losing of the smart cards. In case the cards fall in unsafe hands, there is a danger of the expenditure of your entire bank balance. There are measures to inform the concerned authorities about the loss of the card. But, the time between losing the card and informing the authorities is critical. Unauthorized users may carry out transactions in your name during this period of time.
Mostly, electronic cash is based on cryptographic systems. The transactions are encoded by means of numeric keys while the transaction details travel across the net. Though electronic payments are resistant to forgery, the keys are vulnerable to attack.
This was not to discourage you from taking to electronic payments. It was rather to make you aware of the disadvantages of electronic payment systems. While we are moving towards a paperless environment, we are inviting issues related to electronic security.
By Manali Oak
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