Credit Card Processing

Many online payment options are now available for Internet merchants. The following overview is provided to assist merchants who are new to online payment processing. This information should not replace your own research before making a decision.

Your options will vary based upon whether your business already accepts credit cards. If you have a merchant service provider (MSP) you may only need an electronic gateway to the payment processing network. If you do not currently have a MSP, you can get one or choose an option that doesn't need one.

• Yes - I have a merchant services provider
• No - I do not have a merchant services provider

A sampling of online payment options:

Authorize.Net® helps more businesses to process transactions via the Internet than any other payment solutions provider in the world!

National Bankcard Center Corp NBCC's services provide merchants with solutions that are affordable for all areas of business.

BluePay™ is an Internet payment manager that provides merchants with an e-commerce presence by offering multiple credit card payment choices. Fill out their Online App™ to apply for an instant merchant account.

PayPal The way to send and receive money online. PayPal offers on-line credit card processing to merchants without requiring a merchant services account.

You are a merchant who is already processing your customers' credit cards. Whether you use a Point-of-Sale (POS) terminal or credit card processing software, you can continue using the same processing method with the addition of a web shopping cart, such as the Pageville Shopping Cart, that offers secure order retrieval. The merchant can retrieve the credit card information over a secure link and manually process the orders.

If you have too many customers to manually process credit card payments, you may choose to use an electronic gateway, also known as a processing service provider, such as Authorize.Net® . Processing service providers process the orders for the merchant and deposit the funds into the merchant's checking account.

Having an electronic gateway handle your credit card transactions is valuable if you have a high sales volume or want instant authorization of the customer's credit. It also reduces errors that could be introduced by manually processing credit cards.

Pageville's Shopping Cart works with both Authorize.Net and VeriSign.

A merchant just starting to offer online shopping needs to choose how to accept customer payments. The traditional approach is to set up a merchant services account with a bank, and then to determine how to process online payments from your customers. A good place to start is with your business's current bank, but if you have time you may want to shop around, as the price and services offered vary. A merchant account can also be obtained online, through companies like National Bank Card Corp. Alternative approaches exist that do not require a merchant services account. BluePay and PayPal are two examples.

Next, you need to add a web shopping cart, such as the Pageville Shopping Cart, that offers secure payment processing. A shopping cart is a series of programs that allow your customers to purchase your products online. It also lets you retrieve order and credit card information over a secure web link.

Traditional Approach

  Merchant Services

Apply for a merchant services account through a bank or other provider. During the application process, the you must indicate the payment processing method that will be used on the web site. You should research different processing options before signing up for a merchant services account. The merchant needs to choose an on-line processing service provider, buy processing software, or get a point-of-sale (POS) terminal through the bank.

  Processing Methods

• Processing Service Providers

  The next step is for the merchant to process the order. This can be done manually, with the information downloaded from the shopping cart, or automatically using a processing service provider (also known as an electronic gateway). Whether or not you will need an electronic gateway to handle your online payments depends upon your sales volume.

  Processing service providers, like Authorize.Net, handle the payments for the merchant and deposit the funds into the merchant's checking account, which eliminates the need for manual credit card number entry. Processing service providers typically have set-up fees, monthly fees, and transaction fees.

  Having an online processing service provider handle your credit card transactions is most valuable if you have a high volume or want instant verification of the customer's availability of credit card funds. It also reduces errors that could be introduced by manually processing credit cards.

• Software

  You can purchase credit card processing software to run on your own computer. To use this software, you would retrieve credit card information using an on-line shopping cart with a secure server, such as Pageville's. Credit card data must be manually submitted for processing. Software may need to be upgraded periodically. This option may be best for you if the others don't fit your needs. Your merchant services provider may be able to suggest software options that are compatible.

• Point-of-Sale (POS) Terminal

  A POS terminal is the "card swiper" you see at retail stores. You can get a POS terminal from your merchant services bank. To use the POS terminal, you would retrieve credit card information from your shopping cart with a secure server. Then you manually enter the data for processing. The POS terminal can be rented for a monthly fee.

National Bankcard Center Corp

• Stored value services
• Merchant bank credit card processing
• Processing and age verification equipment
• Pre-paid services
• Bio-metric solutions

Authorize.Net

An Authorize.Net® Payment Gateway account includes:

• Virtual Terminal: Authorize, process, and manage credit card transactions manually from any computer that has an Internet connection and a Web browser.
• Automate credit card transactions directly from your web site by integrating to the Authorize.Net Payment Gateway.
• eCheck.Net®: Add an electronic check payment option to your Web site or call center.
• AirPay™: se Authorize.Net from a wireless PDA device.
• FraudScreen.Net®: FraudScreen.Net, powered by HNC's eFalcon service, is designed to help protect merchants from the risk of fraudulent transactions.
• Multi-Currency Processing: Process transactions in different currencies, from almost anywhere in the world.

Alternative Approaches

BluePay

Online Data Corp has a MVP program that is designed for the startup merchant. No minimum monthly fees. You can pay per transaction and utilize their electronic gateway service with BluePay™. The MVP program is clearly a cost effective choice for merchants that expect sales of less than $1000 per month. Call Susan toll free at 877-794-9637.

PayPal offers on-line payment processing services designed for online merchants who do not have a merchant services account. The only fees associated with this account are low transaction fees, and the approval time is generally quicker than getting a merchant services account. PayPal transfers money instantly between PayPal accounts. Some merchants choose to open a PayPal account during the merchant services approval process, even if they do not intend to use PayPal in the long term.

Advantages:

• The customer can easily make on-line purchases.
• PayPal offers other services such as shipping tools and free money transfer.
• The merchant and customer's checking account and credit card information is verified by PayPal to minimize fraud.
• The merchant instantly receives the on-line payment into their PayPal account.

Disadvantages:

• Customers must have or sign up for a Free PayPal personal account. This could result in a loss of sales from customers that choose not to get a PayPal account.
• Pageville's shopping cart technology helps to minimize this potential loss of sales. At checkout, the shopping cart can provide two options to the customer:
  • The customer can choose to pay online after their PayPal account is set up. The shopping cart session will remain active for a set amount of time, pre-determined by the merchant, so that the customer can easily checkout using PayPal when approved.
  • The second "low tech" option is for the customer to print a form containing their shopping cart order, payment, and shipping information to send with a check to the merchant.