Ecommerce

                I pointed out that research has shown that accepting credit cards can help raise money and speed up cash flow. This week we will be looking to set up an online payment system for your business website. If you are considering connecting a brick and mortar site with a credit card system to many bankers, try asking them how they can do it on your website.

The fact is that most banks can offer you a merchant account that is required to accept credit card payments online, but moreover, they have nothing to do with the process. Even the big banks can have one person in the staff assigned to be a "credit card processing expert" and if that person has ever gone on vacation, you are out of luck (the word of experience speaks here, folks).

I have helped many clients set up online credit card processing systems and more than once I have had to sit down with a bank to withdraw a merchant account and teach them how online payment systems work. You don't believe me? This is a quote (here is the bible, here is my hand) from the manager who was in charge of processing the online merchant account applications at the local bank, "When a person pays online how to swipe a credit card on his computer…"

You will need the following to accept credit cards on your website: (1) an electronic shopping cart system; (2) payment gate service; (3) credit card processor; and (4) an online 

Here's how online credit card processing works. (1) Your customer inserts your credit card details into your website. (2) The shopping cart software sends activity to the gate. (3) The gate transmits the data to the processor. (4) (5) The issuing bank approves or disapproves of the transaction. (6) The processor delivers the results back to the gate and returns the result to the website shopping cart system. The whole process is computer-generated and takes seconds to complete.

We covered most of these things last week. Here’s a quick update for those who missed the basics, then we’ll talk about the shopping cart plan you need to use on your website.

Payment Gateway Service: Payment gateway service is activated when a customer enters his or her credit card details into a web page form. Think of the gate service as the middle person in the process. The shopping cart check system sends a credit card to the gateway service and then transmits the data to the processor for approval.

Credit Card Processor: A credit card processor is an electronic data center that handles credit card transactions from a gateway company, ensures that billing is valid, and debits your account to your merchant.

Internet Merchant Account: An Internet merchant account is a bank or account in which money from an online sale is deposited by a processor. Merchant accounts are usually issued by banks associated with major credit card services such as Visa and MasterCard. Note that most banks will not offer online merchant accounts as they are often classified as "high-risk businesses." This policy is very flexible and ultimately, the issuance of a merchant account will be economically down from a bank perspective. If the bank detects even the smallest iota of risk, you will not be given an account.

Fortunately, the growth of online sales has given the entire retailer service office industry a chance to give you a merchant account and everything else you need to accept online payments. Fees are usually higher, but it is better than not having an online payment system.

Shopping cart. To accept payments made online you must have a so-called "shopping cart system" that allows the customer to select and purchase products on your website. The shopping cart system consists of three components: the product catalog, the shopping cart, and the exit / payment system. The product catalog is the part that shows the items you have for sale on the website. The shopping cart system is a component that allows your customers to select products by clicking on "add items to the cart," and the exit / payment system is the component that allows the customer to complete the checkout process and pay for their purchase with a credit card (or in some cases electronic check). It is the exit / payment component that connects to the gate system to complete the transaction.

 Adding a shopping cart system to your website can be an easy or very difficult task, depending on the system you choose. Shopping cart costs range from free (with a simple form system) to very expensive. Which shopping cart system is best for your business depends on a number of factors, including the product you sell, the depth of your product line, the purchase options you wish to offer to customers, the performance of the control asset, and the range of automation you desire.

There are many companies that can help you set up your shopping cart and online credit card payment system. These companies usually charge hundreds of thousands to thousands of dollars for their services, but like whatever you earn you pay for, so always use a company with good reviews in this area. When you are faced with something as important as a credit card adjustment and cash flow, bite the bullet and do it right the first time. The money you now spend will be reimbursed several times for the increased sales volume from credit card customers.

The most important thing to keep in mind when setting up an online payment system is this: online is about security and privacy. Although online credit card processing has been around for years there are still many people who are uncomfortable giving their credit card number online. These are the same people who do not hesitate to give their credit card number over the phone or give their credit card to a waiter who disappears with it for ten minutes. Processing credit cards online is less likely to be fraudulent and abusive than in those cases