Technological advancements and latest scientific developments have been influencing each and every aspect of human life. One such technology that has revolutionized the entire human thinking is internet. Today, it is even possible to enjoy shopping without moving an inch from the home or visiting expensive malls. There are several online shopping websites offering a magnitude of products that can be bought using either a credit card or a debit card. In order to facilitate these online transactions, banks provide merchants with a special type of bank account called an online merchant account. An online merchant account allows one to accept online credit card transactions. The bank, also known as the acquirer or merchant account provider, which provides the merchant account, extends a line of credit to a merchant who wishes to accept payment card transaction of a particular card association brand.
How does an online credit card transaction operate? In order to accept credit card payments online, there are different components that are required by the website. The entire transaction goes through three different layers before the money paid by the customer reaches the merchant. These layers include:
- Payment Gateway: A payment gateway is the means to transfer and receive the information from the bank. Every website accepting online payments must have a payment gateway. Every bank operates through a separate payment gateway. All the billing details of the customer including his/her credit card number, type of credit card, expiration date, security code and billing amount are filled and submitted through this payment gateway only.
- Online Merchant Account: This is an understanding with the bank, thereby permitting the merchant to accept credit card transactions from the customers. The bank also provides the merchant with a special bank account called the online merchant account. When the billing information submitted in the payment gateway is transmitted to the merchant provider, the bank verifies the information. The results indicating whether the transaction is accepted or rejected are then transferred back to the merchant and the customer through the payment gateway only. If the transaction is accepted, the money gets deposited into the merchant account within 2-3 days.
- Online Web Portal: This is the first and foremost requisite. One should have a web portal that is registered and must be able to integrate with the service provider.
Merchant accounts for websites are being offered by several merchant providers. In most cases, these accounts accept every kind of online payment including debit and credit card transactions, wireless money transfer or an electronic transfer of money using Pay Pal. The demand and usage of such accounts has been constantly increasing with the ever expanding online businesses. However, selecting the right kind of merchant service provider is important in several ways. Apart from ensuring a secure transaction gateway, a merchant service provider must provide a fast and efficient payment processing facility that is capable of handling all the major brands of credit or debit cards. Hence, one should always choose a service provider who is suitable for one’s business requirements.
within 2-3 days.
Merchant accounts for websites are being offered by several merchant providers. In most cases, these accounts accept every kind of online payment including debit and credit card transactions, wireless money transfer or an electronic transfer of money using Pay Pal. The demand and usage of such accounts has been constantly increasing with the ever expanding online businesses. However, selecting the right kind of merchant service provider is important in several ways. Apart from ensuring a secure transaction gateway, a merchant service provider must provide a fast and efficient payment processing facility that is capable of handling all the major brands of credit or debit cards. Hence, one should always choose a service provider who is suitable for one’s business requirements.
Tags: merchant account application | merchant account application | internet merchant accounts | internet merchant accounts | credit card processing | credit card processing | cards merchants | cards merchants | accept credit