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Credit Card Payment Processors
Sue Said:How do you accept credit card payment on a website?
We Answered:In order to accept credit card payments on your website, you will need an eCommerce merchant account. The merchant account company that you choose will provide a payment gateway which will incorporate with your shopping cart and will transmit the transaction information to the processing bank that they have a relationship with. The bank will then subtract its processing cost and will deposit the remaining balance into your checking account.
Also, when selecting a processor, make sure your rates are reasonable. For an eCommerce business the processing rate should not be higher than 2.19% + $0.25 per transaction, with no set up or application fees. You should not be paying any monthly minimums or annual fees. There will be a monthly account fee and a monthly gateway fee, but neither of them should be higher than $10. The gateway, too, should be free to set up.
The verification of the credit card accounts is done automatically by an AVS (Address Verification Service) service. You will need to make sure that your processor supports it but I am not aware of any that does not.
I am not sure exactly what you mean by passing on the credit card information and who you will be sending it to but handling personal information in such a way is not allowed and it is likely that you will run into trouble for doing so.
Jon Said:How do Credit Card Processors Work?
We Answered:How does it work?
This can be one of the more confusing areas of the whole Internet payments processing function. It turns out it's not too bad to understand if it's broken down into steps.
A Tale of Two Accounts
You have two accounts. One is your regular bank account, usually a checking account. This is where the money winds up when the process is complete. The second is your merchant account. This is the account that processes the credit cards you receive. Your merchant account may be with the same bank that you have your regular bank account with. Frequently, it's not.
Banks that specialize in handling merchant accounts, especially for internet merchant accounts, are usually easier to deal with when setting up a new account. When I say "easier to deal with" I mean they require less paper work and they give you a faster response. At the bottom of this write up you'll find a list of Merchant Banks we work with.
Two other participants are involved in the transaction as well. Your eCOMpal shopping cart and a credit card processor.
There are four independent "partners" in the process.
You and your regular bank account. You're selling the goods and services to your customer. The customer's payment winds up in your bank account.
eCOMpal is the shopping cart the gets your customer's payment information in a secure manner so no one else can see it. After it's collected, eCOMpal connects to the credit card processor and passes the information to them and waits for a response. After processing is completed, eCOMpal receives the response from the credit card processor with the accept or decline of the credit card.
The credit card processor is an intermediary between eCOMpal and different banks that work with them. The credit card processors provide the "plumbing" that allows your customer's information to flow from eCOMpal to the bank that hosts your merchant account. It also works with the bank that issued your customer's credit card to verify the account and accept or decline the transaction.
The bank that hosts your merchant account is the financial institution that actually provides the bank-to-bank processing of the transaction. They send a transaction to your customer's credit card bank taking the money from (or adding the money to the balance of) your customer's credit card. They then deduct their processing fees and send the balance to your bank account, which you see a couple of days later, and the loop is complete.
Here's how it works
When your customer checks out at eCOMpal, by entering her credit card number we communicate with the credit card processor (the information is encrypted so no one can see the credit card number). The credit card processor figures out what bank issued the card and calls it electronically to ask if the card is ok. The issuing bank (i.e. your customers' bank) checks the account and sends a Yes or No to the credit card processor.
When the credit card processor receives the response it passes it back to the shopping cart. The shopping cart tells the customer what the response is and continues doing its processing, sending emails, etc. If the answer is Yes, the credit card processor records the transaction for processing later in the day.
Once a day the credit card processor wraps up your transactions for the day into a "batch". It tells each of the issuing banks (your customers' bank) how much to send to your merchant account. This is all done electronically, of course. Your merchant account now has the funds from each of your customers' purchases.
Usually about two days after the original sale the money is transferred to your bank account. Transaction fees have been deducted which sometimes makes it a challenge to figure out what was deposited and when. A $100 sale winds up as a deposit of $97.28 or some such amount.
Different merchant account banks work with different credit card processors. We have several credit card processors we work with. Check them out and compare the rates. We have chosen those that we feel offer competitive rates and provide excellent service. If you're working with a credit card processor that we don't currently support, let us know and we'll see about adding them to our list. Click here to see the Credit Card Processors we work with currently.
Roberto Said:How can you make money setting people up with credit card processors?
We Answered:The only way to get started is to just plunge in and start doing it.
A great company to work for is Central Payment Corp. www.centralpaymentcorp.com Kris Atkinson or CJ are the persons to talk to.
You should be prepared to go out and walk into merchants and offer your services. You could also subscribe to www.goleads.com and get leads for businesses in your area complete with contact names, (costs 10.00 a month for the leads)....I do both. Also Central has a great online training program!
I would also recommend the book "The sales bible" and "The little green book of getting your way" both by Jeffery Gitomer....Excellent books on sales. You can purchase these at any big bookstore chain.
This is the best company I have ever worked for in the payment processing industry. They get merchants up and running fast....they DO NOT over charge there customers, (your customers are happy, and therefore you can go back and ask for referrals, this is the best kind of business.
A good hard working sales person could make 100,000.00 per year working for this company and not break much of a sweat....All you got to do is decide to do it....
That is all I can say, now its up to you....feel free to contact me if you need further info.