Internet Credit Card Processing

Internet credit card processing is now one of the most common methods by which merchants accrue funds from their customers’ electronic card payments, such as credit or debit cards. In fact, it’s only way to do so, and many successful merchants today now know they have to have Internet credit card processing to have any chance at succeeding in the online business world.

As the global economy has taken a major hit in recent years, it should surprise no one that so many consumers have gone online to find what they need; after all, in many regions of the world, online shoppers don’t even need to pay taxes on goods or services bought on the Internet. Wherever there’s a chance people can save money, as well, they seem to take it.

But how does Internet credit card processing actually work? There are a few basic components to any Internet credit card processing set-up, so let’s run through the basic process. For a merchant to accept payments from his patrons on his website, he first must acquire a merchant account – a specialized account that is set up for processing payments.

After you get your merchant account – specially designed for online transactions, of course – your Internet credit card processing may begin. Whether the card is swiped or the information is keyed in, that credit card information is then transmitted to the processor, who relays that data to the issuing bank – and this is when the transaction receives the approval, or in some cases, the infamous decline. This could be due to lack of funds, an expiration, or if that card was reported stolen.

After your Internet credit card processing service acquires the vital data, the bankcard organization relays its message to the system: an authorization code that allows the funds to be secured, typically about six digits long.

After this vital step of the Internet credit card processing line-up, the customer’s transaction is piled up with other customers’ transactions, which is known as a batch. After a day’s work, merchants will submit a request to the Internet credit card processing network for capturing the money that was approved on that particular day. The numbers are matched up with the authorizations by the Internet credit card processing system, and then accepted.

Once monthly, the Internet credit card processing provider (and the one who provides the merchant account) will issue a monthly statement outlining all the transactions that occurred, fees, and other vital information.