Sean P Jones asked:




Credit card payment is the most common way of online transaction, yet when it comes to understanding how credit card processing works most of us are quite confused.

When a retail store cashier swipes your credit card through credit card terminal, the following process takes place: credit card and payment details are sent electronically to merchant’s acquiring bank, which contacts credit card issuing bank; in case transaction is approved, funds are deposited on the merchants account.

Online credit card processing in ecommerce adheres to the same processing steps, except the physical credit card terminal that swipes your card in a retail store is substituted by payment gateway (Authorize.Net, 2checkout, CHASE Paymentech, etc.) – a service that processes online payments in a secure way.
The overall credit card processing scheme in an online store usually looks like the following:

A merchant needs to have a merchant account and a payment gateway account in order to set up credit cad processing in his store.

Let’s follow the steps from the time a customer types his credit card number in an online store to pay for his order till he receives a response whether the payment went through:

1. A customer places an order and types his credit card number on a secure site of an online store. Store administrator sees the shopping cart details, which include order and billing information.

2. Shopping cart details along with merchant account are sent to payment gateway secure server for processing.

3. Payment gateway forwards transaction information to merchant’s acquiring bank.

4. Merchant’s acquiring bank forwards transaction information to the credit card issuing bank for transaction verification.

5. Credit card issuing bank verifies transaction and sends response code (Approve, Deny, and reason for denial if applicable) back to merchant’s acquiring bank.

6. Merchant’s bank sends credit card transaction details and response back to payment gateway. If payment is approved, the bank will deposit funds on a merchant’s account at the scheduled time.

7. Payment gateway sends transaction details and response back to merchant’s online store.

8. Payment information is displayed to the customer; i.e. “credit card was charged”, “credit card was denied”, etc.

At certain processing stages fees will be charged from the transaction total. The amount of fees depends on a payment gateway used, merchant account, credit card type, and other factors; it usually adds up to be two to three percent of total charges.

Chester

Ramshankar asked:


The best online credit card sites have become difficult to find. It’s not that they aren’t there; it’s just that there are so many offering the same thing. Just do a search on your search engine of choice for your particular requirements and you will be rewarded with an abundance of riches. But which of these online credit card sites actually offer the best to you, the potential customer, in terms of service?

The figures almost defy belief. In the United States alone there are currently 641 million credit cards in circulation at the present moment, with 186 million people holding credit cards right now (source: pbs.org) accounting for a staggering $1.5 trillion worth of consumer spending. The best online credit card sites will be responsible for the majority of these, because these will be the major sites for the banks and the credit lenders themselves.

Search for “online credit cards” (i.e. with quotes and therefore looking for that exact phrase) on Google and, at the time of writing you will be presented with a choice of 556,000 pages on the subject. This is information overload at its most vehement. To filter that down to the best online credit card sites you would need to apply your own special criteria for choice.

But what of the other sites, the sites not owned by the banks or the major lenders? Surely there are other places which offer a Value Added service in addition to the same old “Click Here For A Credit Card” sales patter? Search engines like Google are in the process of helping you out here, because their procedures are seen to be increasingly filtering out duplicate content from the search results in their system. In the medium to long term this will, hopefully, increase diversity and choice for the consumer. It will mean that locating the best online credit card sites will become easier.

This Value Added aspect of the best online credit card sites would probably use a service or technology designed for the Internet. What more appropriate reason to apply for a credit card from the Web than to be able to harness the power of the Web to automate certain features of credit card usage. For example, being able to look at your account online, or be able to order new credit cards or even to make balance transfers to new cards when your present 0 APR period is due to expire. Or what about some other service which can actually save us money? After all, the banks and other lenders are always keen on taking money from us; it would be nice if we found a way of keeping more money for ourselves.

The Internet is about using technology to make our lives easier, not more complicated. One day, when the search engines have filtered out uniformity and the same old sales messages, the best online credit card sites will be the ones that harness that technology to make our use of credit cards and other financial products easier, safer and less costly.Did you find this article useful?  For more useful tips and   hints, points to ponder and keep in mind, techniques, and insights pertaining to Internet Business, do please browse for more information at our websites.

http://www.adsence-dollar-factory.com                                     

http://www.100earningtips.com



ALBERT

Ramshankar asked:


The best online credit card sites have become difficult to find. It’s not that they aren’t there; it’s just that there are so many offering the same thing. Just do a search on your search engine of choice for your particular requirements and you will be rewarded with an abundance of riches. But which of these online credit card sites actually offer the best to you, the potential customer, in terms of service?

The figures almost defy belief. In the United States alone there are currently 641 million credit cards in circulation at the present moment, with 186 million people holding credit cards right now (source: pbs.org) accounting for a staggering $1.5 trillion worth of consumer spending. The best online credit card sites will be responsible for the majority of these, because these will be the major sites for the banks and the credit lenders themselves.

Search for “online credit cards” (i.e. with quotes and therefore looking for that exact phrase) on Google and, at the time of writing you will be presented with a choice of 556,000 pages on the subject. This is information overload at its most vehement. To filter that down to the best online credit card sites you would need to apply your own special criteria for choice.

But what of the other sites, the sites not owned by the banks or the major lenders? Surely there are other places which offer a Value Added service in addition to the same old “Click Here For A Credit Card” sales patter? Search engines like Google are in the process of helping you out here, because their procedures are seen to be increasingly filtering out duplicate content from the search results in their system. In the medium to long term this will, hopefully, increase diversity and choice for the consumer. It will mean that locating the best online credit card sites will become easier.

This Value Added aspect of the best online credit card sites would probably use a service or technology designed for the Internet. What more appropriate reason to apply for a credit card from the Web than to be able to harness the power of the Web to automate certain features of credit card usage. For example, being able to look at your account online, or be able to order new credit cards or even to make balance transfers to new cards when your present 0 APR period is due to expire. Or what about some other service which can actually save us money? After all, the banks and other lenders are always keen on taking money from us; it would be nice if we found a way of keeping more money for ourselves.

The Internet is about using technology to make our lives easier, not more complicated. One day, when the search engines have filtered out uniformity and the same old sales messages, the best online credit card sites will be the ones that harness that technology to make our use of credit cards and other financial products easier, safer and less costly.Did you find this article useful?  For more useful tips and   hints, points to ponder and keep in mind, techniques, and insights pertaining to Internet Business, do please browse for more information at our websites.

http://www.adsence-dollar-factory.com                                     

http://www.100earningtips.com



JUSTIN

Rebecca Beckett asked:


It’s so easy making purchases online and just waiting until they arrive in the mail. However, with this rise in web business and online credit card processing, people need to be even more diligent in protecting their identity. Make sure you are playing it smart when it comes to using internet transactions to make your life easier.

Credit cards are the most common way people pay for things online. While some options also include paypal, direct from your checking account or e-check, most people tend to rely on credit cards. You should not be afraid to shop online or store your information online. However, you can easily make yourself smarter regarding some of the scams out there and also how to make sure you are shopping from a secure source.

1. Keep your internet browser updated. Browsers have security software capabilities and you need to keep this information up to date. Make sure you are using the latest encryption technology.

2. You can look for digital certificates to validate the identity of the site you visit. Look for the VeriSign logo on the site or other such independent services, which will assure you that the site is legitimate.

3. Read the privacy policy. Make sure that your personal information isn’t being sold or passed around.

4. Use one credit for online purchases rather than several.

5. Every once in awhile you may receive those scam e-mails asking you to verify your personal information, passwords or credit card numbers. Don’t fall for these e-mails. Never give out this kind of information unless you know exactly who is requesting it.

6. Keep receipts and keep track of your credit card statements.

7. You will almost always get an online receipt when you purchase. Make sure you receive one.

8. Keep an eye on the domain. Make sure you are not transferred to an outside site trying to steal your information.

More and more people are using the internet to save costs during this troubled economy. From online subscription services allowing you to get household items at monthly increments to buying gifts for the whole family, there is a reason for everyone to flock to the web. It is a great way to comparison shop. Online banking too is becoming more commonplace. The days of check writing are in the past and the days of bill pay, credit and debit cards are here to stay. In fact, even a lot of media is now online allowing users to purchase downloadable television shows, movie and music. We have not seen the end of the wonders and possibilities available with the internet.

Act smart when you purchase things online, pay your bills or handle other banking matters. You don’t have to shy away from the internet as more and more things are becoming easier to handle online. However, you should stay smart. Protect yourself so those scam artists don’t steal your identity. If you do become afraid that you are a victim of identity theft check your credit report online. Stay on top of your information so that you can make sure it is accurate. If you take some simple steps to keep your information safe you will be able to shop online with peace of mind.



ELDON

Roger Powers asked:


Credit card number validation is essential to determining a valid transaction.  Because merchant account fees are so high, verifying a credit card number before submitting it to the processor can save time and money.

Did you know that even for a declined credit card assesses a transaction fee, and often an AVS fee and WATS fee, and other charges that could total between $.30 and $1 each.

Some declined cards can be weeded out using credit card validation at your site, or through a free online credit card verification tool.  Taking bad card numbers out of the picture will drop your declined card rate, and save on fees.

Some merchant providers look closely at the declined card rate when evaluating your discount rate or transaction fees.  A high rate of decline could mean a rise in fees.  By managing bad card numbers, you take one factor out of the loop.

Many online shopping carts and order forms already have a credit card validation routine built in to them.  If you have one that does not, use the readily available JAVA scrips that utilize the card number verification algorithm to eliminate bad card number declines from your merchant record.

You can build in a validation routine for MasterCard validation, Visa card number verification, American Express card validation and Discover verification.  When the number is validated, simply pass the transaction to the merchant provider.  If the number is not validated, you can display a message before the transaction even proceeds to alert the end user that the credit card number entered is invalid.

You can add additional validation by screening the Bank Identification Number [BIN], which is the first 6 digits of any credit card number.  The BIN will tell if the card is debit or credit, what type, what bank issued it and what country it is from.

 

 



DARYL