Online Credit Card Merchant Accounts: What You Must Know

Without an online credit card merchant account, businesses who sell products and services online would be unable to process their patrons’ electronic forms of payment, including credit and debit cards. And, as we all know, there aren’t exactly soda pop machine cash slits on home computers to accept the paper money we all know and love. But, what are some of the essential components that make up an online credit card merchant account, and how do such components facilitate the process of authorizing, transmitting, and securing credit card transactions? Let’s take a closer look at online credit card merchant accounts, how they perform their functions, and how they benefit merchants – both online and off.

There are typically about five separate, fundamental components of online credit card merchant accounts and their processes: your patron’s credit card presented for payment, your shopping cart software, a payment gateway, the online credit card merchant account itself (the processor), and your merchant’s checking account. Let’s examine the nature and purpose of each:

Consumer’s Credit Card: Your customers’ cards, of course, supply the funds needed for the purchase. Authorized transactions are processed similarly, whether credit or debit.

Shopping Cart: A shopping cart is an online application that holds your customers’ card information, order specifications, and billing and shipping information.

Payment Gateway: A payment gateway encrypts and transmits sensitive information from the cart to your merchant account.

Online Credit Card Merchant Account: This processes and verifies your customers’ credit or debit account for payment. After processing, funds are transmitted to a checking account.

Merchant’s Checking Account: The last stop in the online credit card merchant account process, a merchant’s checking account accepts the funds from your transactions.

One of the credit card processing concepts that is often difficult to understand for many merchants who do business online is differentiating between the payment gateway account (the online card processor) and the online credit card merchant account. Although the two are separate aspects of online payment processing, both are required, and both function collaboratively to automatically manage online payment processing.

If you are a business owner and you would like to conduct business online and accept payments from your customers digitally, then call Vision Payment Solutions today. We’ll get you set up with the ideal, optimized online credit card merchant account service package, and before you know it, you’ll be on your way to a larger customer base and higher profits. Call us at the number above!