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The 3 Steps
to Accepting Credit Cards
Accepting credit card orders on the Internet is easier said than
done — credit card transactions are a complex process, and
hundreds of companies offer products that claim to handle the details
for you. Choosing the best one for you is not easy. Regardless of
the companies or services you enlist, there are 3 basic steps to
accepting credit cards: 1) Getting the customers credit card number
from the user's browser to you securely, 2) Processing the credit
card information and authorizing the transfer of funds to a merchant
bank 3) A merchant account with a bank that underwrites the risk
involved in your transaction processing.
Taking Credit
Card Information.
The most popular way to transmit credit card data securely over
the Net is the secure sockets layer (SSL) protocol. Whether you
gather customer credit card information from a form or a shopping
cart, you will want it to happen on a secure server. In order to
make a server secure using SSL, a digital certificate is required.
The digital certificate identifies you as a legitimate business
and allows all information to be encrypted for travel over the web.
Sound confusing? Well, it can be a hassle if you don't know what
you are doing. Fortunately most web hosting providers can help you
with this. And many integrated service providers such as Bizhosting.com
take care of it automatically.
Getting a
Merchant Account
You'll need a special bank account in order to accept credit card
orders. Most banks offer merchant accounts — the problem is
figuring out which one offers the best price, usually as a percentage
of each credit card order that you submit. Most banks charge higher
fees for what they consider risky accounts, such as those with large
numbers of charge-backs or fraudulent charges. Usually a U.S. business
checking account and good credit are required to get approved for
a merchant account.
Processing
Credit Cards
This is where things get really tricky. Dozens of companies offer
transaction processing software that sends the right information
to everyone involved in the sale — your bank, the customer's
bank, the bank issuing the credit card and so on. But most banks
work with a handful of the biggest companies, including Authorize.net.
Some processors lease their services
to you for a monthly fee, while others take a percentage of your
sales. Some processors will help you get a merchant account if you
need one, and many have deals with ISPs that provide everything
you need to build an online store. Be sure before you make any commitments
that your processor is compatible with your merchant bank and your
shopping cart software if you plan to do real-time processing.
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