For the merchant, it will mean having to rely on credit card details that are given by a customer who is not physically present, while the consumer may also be concerned as to how secure their credit card details will be, when they are transmitted over the Internet. With so many consumers now using their credit cards to buy goods and services online, it is imperative for any online merchant to have the necessary payment structure and security in place that will allow them to process transactions in a fast and secure manner.
However, before they are able to accept credit card payments online, the merchant needs to have two major components in place. The first is an online Merchant Account, and the second is a Payment Gateway, a unique online facility that acts as a security filter between the merchant's website and the actual payment processor, who is responsible for processing the transaction.
The payment gateway therefore provides a number of important services including substantial fraud protection, as well as being able to support the major credit cards, so as to allow a fast and secure payment transaction.
The merchant should always consider what particular solutions they require from their payment gateway. In fact, a less expensive payment service provider may not always be the best option, as their quote may be based on just a limited number of services, whereas what initially appears to be a slightly more expensive payment solutions provider, may in fact include all the services that the merchant requires and so prove to be a much better value option in the long run.
At E-Clear we combine the technology and innovation of a leading Payment Service Provider, with the strength of a global payments network. Our enhanced risk prevention and fraud protection tools have been designed to provide both the merchant and the consumer with the fast and secure online processing service that they require.
Although receiving online payments can be exposed to a higher risk of fraud, the benefits they give to merchants can far outweigh the risk factor. By having the ability to receive online payments, businesses are able to significantly increase their customer base and reduce running costs and overheads.
A company, who can provide online payment systems to both new and existing website owners, is known as a Payment Service Provider (PSP). This complete integrated service will include a merchant account and an online payment interface. The process begins when a customer purchases goods or services online from the merchant's website. Their credit card details are then collected or ?acquired? by the Payment Service Provider and the details of the transaction, including the account number, the amount of the purchase and the type of currency, will be transferred to the PSP server.
The server then reads the information and sets the basic parameters for the transaction. It then presents the customer with a new page that requests the card type and number, the expiry date, verification number and billing address. Some of the information now provided by the customer is encrypted, to ensure it is transmitted securely to the PSP. When the customer hits the submit button on their PC, the PSP will perform a number of background checks to ensure that the card is valid and that there are sufficient funds available to process the transaction. Some PSPs will also perform basic fraud checks before confirmation is given.
Once the PSP has completed the transaction, the server will send the resulting information back to the merchant's website. This will include the customer's card details, as well as the time of the transaction and the results of the Address Verification System (AVS) check. Most e-commerce websites will then log this information on their own database, so it can be viewed by the website's back office functions. The cost of processing an online payment using a PSP can vary in terms of the amount and how it is calculated and billed. Every processed transaction will incur a small charge, which is usually a percentage of the transaction amount for credit cards, and a fixed fee for debit cards.
John Davies has sinced written about articles on various topics from Credit Cards, Finances and Your Online Business. John Davies is a Senior Copywriter for E-Clear (UK) PLC Company. For further information please click on: or call us now on: +44 (0) 20 7887 6. John Davies's top article generates over 9900 views. to your Favourites.