One of the most confusing aspects of merchant credit card processing online for merchants new to it is the difference between a payment gateway account and an Internet merchant account. Although these are two separate components of merchant credit card processing online, they are both vital, and work together to handle payments automatically.
Commercially available shopping carts will typically have configuration settings allowing a number of gateway choices. An Internet merchant will usually want to select the shopping cart and web site hosting company and then order their merchant account based on the gateways that are available in the shopping cart.
The following information diagrams the typical payment process involved in merchant credit card processing online, from the time the order is placed in the shopping cart to the funds being deposited in the merchant’s bank account.
1) The consumers order their products on the merchant’s web store, preferably on a secure web page so that the consumer’s personal information including banking information (credit card or check) is encrypted so that it can’t be intercepted and read by third parties while implementing merchant credit card processing online.
2) The shopping cart on the host computer gathers the order information, compiling it into a form that merchant credit card processing online expects.
3) The shopping cart transmits the data from the host to the payment gateway portion of merchant credit card processing online. The processor scans what it received about the order to continue processing the transaction correctly. It then determines what company manages the customer’s credit card and requests the card to be charged.
4) The customer’s credit card company validates the card and the account. If everything checks out correctly, the credit card company sends an acknowledgement back to the card processor that the funds can be transferred. If merchant credit card processing online denies the charge, it sends a code back to the credit card processor indicating the issue.
5) The merchant credit card processing online service now tells the shopping cart whether the transaction was successful. The credit card processor initiates a funds transfer to the company implementing merchant credit card processing online, for deposit into the merchant’s business bank account.
6) Internet merchant accounts collect the funds for a specified period of time and make scheduled transfers to the merchant’s regular bank account and the merchant credit card processing online routine is complete
Merchant credit card processing online can be a difficult concept to fully grasp, but with a little research – and a friendly conversation with one of our experienced sales representatives, Vision Payment Solutions can have your business reaping the benefits of merchant credit card processing online in no time!