Processing Credit card payment for your online business or website
As the internet businesses (ecommerce) grow fast in recent years,
there is increasing demand for organizations or individuals
conducting e-commerce businesses to collect money through the
internet. For this article, we will discuss existing ways to
collect credit card or debit card payments by using merchant
account or third-party company.
Collecting online money transactions directly
Collecting credit card or debit card payments on your website
directly is the best way but has more risk than using third
party payment processor. The obvious advantage is,
your customers don’t have to leave the website to make a payment.
The most challenging party is securing the information collected and
the security of the website collecting the information.
You must have a secure website that encrypts, authenticates, and
protects the sensitive information collected. Such websites use a
protocol known as Secure Sockets Layer (SSL).
Before condering setting up an ecommerce website that processes
sensitive information, make sure your website is SSL enabled.
Apart from the security and confidentiality of the
information collected, you need to setup a merchant
account with your bank or financial institution similar to the offline merchant
account for business that collect credit card and debit
card payments. The bank or financial institution will also setup the system for you.
Normaly there is setup charge as well as percentage carge for
each transaction.
Using Third Party Online Payment Processor
There are numerous online payment collectors that would collect any card
payment on your behalf.
It’s easier to use online payment processor than to implement the system
your self since you don’t have to wary collecting and securing customers
information. The drawback of using payment processor website is, customer
will leave your website while making the payment.
Normally payment processors will provide you with shopping cart to utilize
in your website. These third party payment processors will normally charge
percentage of the money collected and deposit the rest to you bank account.
Some of the major online payment processors are;
Paypal
Most popular online payment processor. No setup or annual fee. Charge percentage of each transaction.
Propay
Another payment processor. Has annual and percentage of each transaction charge.
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How To Process
Online Card Payment 