CREDIT CARD PROCESSING ON LINE

Credit Card Processing On Line For Web Stores

E-commerce, or Electronic Commerce, is one of the most important aspects of the Internet to emerge. It allows people to exchange goods and services immediately and with no barriers of time or distance. Any time of the day or night, you can go online and buy almost anything you want. However, the road to creating a successful online store can be a difficult and confusing one if you are unaware of the concepts and principles behind E-commerce. The trick to entering this market smoothly is to find out what you need to do before you have to do it.

If you business does not already offer credit card processing on line, you could be limiting your company's potential. Many people purchasing online are buying for the convenience. If you require consumers to obtain a money order, or write a check and send it out, you are making things more difficult for them. Being able to accept credit card payments allows ease of use for consumers, and allows you to process order quicker, and ship them out much faster than waiting on a payment in the mail.

There are a few ways you can set up you business to accept credit card processing online: you can obtain your merchant account through your current business bank, or you could opt for third party merchant account management. Setting up a merchant account with your current bank will require some work, and does require maintenance. You will have to go through a lengthy application process, involving credit checks, and will usually have some sort of set-up fee. This type of merchant account will usually carry a monthly fee, but you will not be paying the large discount rates that many third parties will charge. You will need to maintain the finances in your account yourself, and distribute them accordingly.

On the other hand, there are third party merchant accounts. These types of accounts usually require the same application process, but typically will assist high risk online businesses better than banks will. You will usually pay a small fee per transaction, typically 25-50 cents, and a percentage of total sales percentage, which can range anywhere from 1.5% all the way to 5% and higher, depending on the industry you are in, and your risk factor. Some companies, such as Credit Card Processing Services (CCPS) will do all the work focusing on your account, such as automatic fund transfers to your accounts and so forth, allowing you to concentrate your attention on your products, and customers.

Drawbacks of E-Commerce
Moreover, the major credit card companies offer their cardholders the right to contest charges on their statements that may be the result of theft, fraud or error. A contested charge is referred to as a chargeback. When a chargeback occurs, the merchant will end up paying the charge to the issuing bank, in addition to a chargeback fee that can be as high as $30 or more. For example, if you sell a book for $20 through a credit card transaction, and the cardholder later contests the sale, you will end up paying your bank the $20 plus a chargeback fee of $10 to $30 dollars.

Consequently, many banks require a reserve fee when issuing merchant status. Typically, face-to-face sales have a chargeback rate of 1% of all sales. The potential for chargebacks is greater when it is an online sale, so the risk to both bank and merchant increases.

Security Features
Not matter what you do there will always be people who are weary of shopping on the Internet. Even though you may the safes technology available, people will still be afraid that their credit card and personal information will be stolen. The standard in online security is Secure Sockets Layering (SSL) technology. This 128-bit system ensures that your customers' personal information makes it safely, from their browser, to your server. Also, having the SSL icon displayed on your site offers peace of mind to consumers who have doubts about the Internet being a safe place to shop.
Giving consumers the option to purchase products from the comfort of their own home is a great option. Finding the right company to allow you to do credit card processing on line can be difficult. There are many out there offering similar services, and you need to find a company that offers, first off, low percentage rates and fees, second, straight forward contracts, with no hidden fees that will get you in the end, numerous services to help build you business, such a custom shopping carts, and top of the line site security, to keep our customers feeling safe at all times.

Could your business use a merchant account to accept credit cards?