Credit Card Processing For Online Payments

Credit Card Processing For Online Payments

Credit Card Processing Like brick and offline shoppers, online shoppers also want to get some benefit from online shopping. Getting the product quality is icing on the cake but having a wide range of payment option make the customer comfortable and safe and hence, they increase their online shopping. Accepting and debit card on an online store increase the sales because it is more convenient to use rather than cash on delivery. It provides easy credit card processing. However, many business owners face some problem-confusion has arisen due to different choices available for payment. Let me explain two methods of credit card processing:
Real-Time Online Credit Card Processing In this method, the customer enters the details and other payment information and it is processed through an online payment gateway. It takes few seconds for processing and payment deducts from a debit or credit card right away. It requires a high cost for credit card processing.
Card Present or Swiped There is a credit card terminal or mobile reader available at the retail shops where merchant collects the details by swiping the card through it. Generally, people swipe for a lower amount than an online transaction.
How Online Business Can Access Payment For an online business, they need to have an online payment gateway and merchant account to accept the online credit and debit card. Moreover, just like other business owners, must research about the merchant account provider and select the one that feels right for you. Many local banks also provide merchant account facility, moreover, if you already have credit card processing machine, just ask the account provider to add this facility to an online store. With credit processing, you can shop at almost all the online stores and pay online bills.
Payment Gateway for Accepting Card Payments Payment gateway is the e-commerce application by merchants permits payments for online sales, and provides you to accept the credit card information over the internet of your beloved customers. HOW DO PAYMENT GATEWAY WORKS?

Payment gateway an strongest tool in website that transform information between a payment portal. It works normally as a customer pay in a restaurant or the mortar/retail store he shops. But the payment gateway is also simple and kept straight forward to the customer who will be making the payment. Following are the steps by which payment gateway works
Step 1- A customer browse on the e-commerce website and he place the order as he likes the product. and enter the card information.
Step 2- The customer then fills the necessary details on the available site. The encrypted data is first being transmitted to the merchant business with the proper order confirmation.
Step 3- This encrypted data is then send to the credit card association like visa, master card or any other credit card company. This company charges an interchange fee for the per transaction.
Step 4- In this step the transaction is approved or denied which means the card number entered by the customer is proper and it has enough funds so the transaction can be processed.
Step 5- In this step transaction is being authorized. The credit card company that is the issuing bank sends the confirmation to the payment processing network company. The authorization starts with a credit card issuing company then back to the merchant business. Finally goes back to the e-commerce website through the payment gateway.
Step 6- After all this steps as it takes matter of seconds within 24 to 48 hours funds are been transferred to the merchant account.