Print Article for : Credit Card Transaction Processing

Your Online Guide » Credit Cards » Types of Credit Cards

[C1237]Credit Card Transaction Processing

by Debbie Dragon, Deb

As an online merchant accepting credit card payments, you have numerous security issues that you must be aware of for the safety of your business and your consumers. At this time, there are two main aspects of credit card security for credit card processing, including “AVS” and “CVV”. Both allow credit card transactions to be completed anonymously over the internet, and any merchant accepting credit cards online should require both forms of information of your customers.

Address Verification Service

The “AVS”, or address verification service, is used to determine that the address provided by a customer matches the address associated with a credit card account. This helps generate confidence that the person who is entering the credit card details is the person who owns it. While the AVS is not required to process credit card transactions, when it is provided the transaction processor will send a response back with details of how much of the address provided matches the address on the credit card.

A credit card will not be denied if the address is entered wrong, it is up to the merchant to decide what to do if the address only matches partially or not at all. You can deny the sale, or require the buyer submit additional information, or give them the opportunity to correct the address information, before processing the transaction.

Card Verification Value

The “CVV”, or card verification value, sometimes referred to as the CVV-2 is a three to four digit number found on the back of American Express, MasterCard and Visa cards. It's on the card but not on any statements, so that if an individual has found a credit card statement in the trash, they aren't able to complete a sale that requires the CVV code for verification purposes. When a customer is able to enter the CVV code, it's a strong indication that the customer has the credit card in hand, which increases the potential of the card belonging to the person who is attempting to use it to make a purchase online.

Most credit card fraud online occurs when a thief has found a discarded receipt or a thrown out credit card statement, but by requiring the CVV code, the merchant can eliminate that type of fraud.

If a CVV number is entered and is incorrect, the transaction will be declined by the credit card issuer.

Providing Consumers with Top Security

If you are going to accept credit cards online for payment for products or services offered through your website, it's imperative that you provide your customers with a guarantee that you're protecting their credit card information.

Credit card processing typically requires that the customer's information is transferred about four times, which means there are four instances when someone could gain access to the cardholder's details.
When a customer first sends the credit card information to you via your checkout or web based form. You are solely responsible for security as the internet merchant, at this stage in the credit card transaction process. Having a secure server and a valid security certificate with the https protocol will protect and encrypt private information you receive from customers.

You will want to be sure that the credit card transaction processing software you use for your business is secure by using a reputable processing company.
As customer information is moved in and out of a database through the transaction process, the security must be top of the line- and this is ensured by choosing a solid company that offers encrypted software for this part of the process.

Finally, when customer credit card information is viewed or handled by you or your staff, it's important that you ensure security at this stage as well.

Credit cards have become a luxury as well as a need for customers who prefer to shop with light pocket and no heavy cash in it. While the whole credit card processing may sound a benefit for customer but in reality this method of payment is also a requirement for trader who wish to trade large and wish t grow their credibility as well as status.

Credit card processing in simple words is payment of goods or services via swiping of card through the credit card machine. The whole process takes no time and allows a customer buy or purchase anytime from anywhere, while also adding to the sales of the trader or business owner dealing with a credit card holder.

Credit card processing has terms, benefits and a backhand process that makes it as simple as it sounds. Some of the most common term that comes in the credit card processing technique is credit card holder, credit card issuer, merchant account and mobile credit card equipment. A credit card holder is the one who gets the privileges of using credit card for shopping from the bank or Credit Card Company. Credit card issuer is the bank or the credit card company that authorizes the whole electronic transaction and benefits to customer and trader, while a merchant account is the account or the deal between a trader and credit card company to permit the trader with credit card processing service.

When it comes to credit card processing benefits a bank or a credit card company comes with one big condition for both the merchant account holder as well as the credit card holder. This basic condition is the eligibility, whether the trader has a legitimate trade or whether the trader has any history of fraud. Similarly, in the case of a credit card holder, the bank would see the requirement of a credit card account such as the balance.

Credit card processing being an easy and comfortable service has become a trend among the buyers and sellers. While customer enjoys the liberty to shop even when he or she has no cash in its pocket, the trader or business owner enjoys the credibility tag and the growth in business. Fact that a store allows credit card processing makes it not just a big store but also the most vulnerable one among its neighbor stores that may not be having the service of credit card processing. A trader does not just benefits from the increased sale but also gets the benefits of merchant account.

For those who trade or shop on internet credit card processing is like gift to them, as it allows easy payment or money transaction without any hassle of going to the website owner's land based address. Also, a website company can always sell its service to the customer by quick and fast payment mode via easy punching of credit card numbers.

What makes the whole credit card processing fast and simple is the fact that within a fraction of second's whole transaction takes place. The moment a customer swipes it's card and punches the credit card number, bank scans the customer's account and lets the trader know whether the transaction is possible or not. If possible, the customer is authorized to get his payment done and the trader gets his payment in his merchant account.

Article Source : Credit Card Poor Credit Rating

About Author

Both Debbie Dragon & Devin Gilliland are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Debbie Dragon has sinced written about articles on various topics from Finances, Credit Cards and Kitchen Home Improvement. This article has been provided by Creditor Web. Creditor Web has the articles and other resources to help you choose th. Debbie Dragon's top article generates over 165000 views. to your Favourites.

Devin Gilliland has sinced written about articles on various topics from Gardening, Credit Cards and American Express Card. Credit-Wisdom.com Provides Expert opinions and reviews to help you Compare and apply for and sign up for. Devin Gilliland's top article generates over 201000 views. to your Favourites.