Studies have shown that you can increase your business sales manifold if you accept credit card payments from your customers. This is because most people are not like to carry cash around, and so using their debit card or credit card is their preferred mode of payment. Suppose, you own an online store where people can make orders by the click of the mouse. It follows naturally that you should be also in a position to accept credit card payments online. Then there may be situations where the people would prefer to make their orders by phone. There are companies that give a toll free number and the people can place their orders and give their credit card information based on voice prompts.
To accept credit card payments, you need to have an online merchant account with any financial institution, bank, or acquiring institutions. These institutions will deposit the money accepted through a website into your account. Apart from getting a merchant account, you must also get a payment gateway. As the name itself suggests, the payment gateway is a gateway, actually a code, which processes and validates the credit card information by sending the information provided to the credit card company and gets an accept or decline message. On getting the accept message, the gateway then transmits the amount from the website to the merchant account.
Address verification is the most important aspect of credit card services, as it is essential to fight against credit card fraud. Some credit card companies ask for the CID or the credit card identification digits.
Software such as the IC Verify (DOS winpopup), PCAuthorize (Windows), or MacAuthorize (Mac) These software are required to process the credit cards.
As a merchant, you can accept credit card information on your own website or on the website of the acquiring institutions, with whom you have your merchant account. These institutions charge a nominal fee for their services, but the increase in sales is well worth the investment.
Archive for October 30, 2011
Merchant Credit Card Services
Merchant Credit Card Processing – Methods of Accepting Payments
Traditionally, for a business to process credit cards, there had to be a credit card terminal, or point of sale system, physically at the place of business that the customer had to swipe their card through. This method is perfectly acceptable to any business which is a traditional brick-and-mortar setup. However, for businesses which travel to their customers, like plumbers, cable technicians, home repair, mobile auto detailers, and so on, there becomes a problem. It is best to collect the money at the time the service is rendered. For mobile businesses, without a terminal, the customer’s credit card number would have to be written down and charged later which leaves the door open for many problems. Two other types of businesses that need the ability to process credit cards, but cannot physically swipe the customers card are online stores and phone order companies. The aim of this article is to make the reader aware of the various payment acceptance methods of merchant credit card processing.
Retail credit card processing is the standard method of accepting merchant credit card payments. With this method the business has a card terminal, or point of sale system with integrated card reader, physically at their place of business. When a sale is made, the customer swipes their card and the terminal connects to the payment processor via dial up modem or dedicated internet access. This is the most straight forward solution for any standard brick-and-mortar business in which customers come to the store. Examples of stores like this are: convenience stores, auto repair shops, clothing stores, etc.
Wireless credit card processing is a credit card terminal that has the ability to connect wirelessly to a payment processor. Usually these types of terminals connect via an AT&T or Verizon service plan that is included with the monthly price of the terminal. This type of merchant processing is ideal for businesses who travel to their customers. Rather than having to carry cash, worry about theft, invalid card numbers, or bad checks, the customers card can be ran on the spot. If the card is invalid, or has insufficient funds, the terminal reports that immediately. Wireless merchant accounts make doing business on the go much easier.
Online merchant accounts are geared mostly toward online businesses. The types of accounts, in their simplest form, come with an online virtual terminal with their payment gateway. Two popular payment gateways that offer virtual terminals are Authorize.net and Linkpoint. The virtual terminal lets a business log in from any internet connection, via a web browser, and type in the customers information into the virtual terminal for processing. The virtual terminal replies immediately to whether the card was successfully processed or not. For online stores, and more advanced users, the payment gateways can be directly integrated via programming and API calls, to an online store. This type of merchant service also works well for mobile businesses because, with a laptop and wireless internet connection, the virtual terminal can be used from anywhere. However, using the virtual terminal, rates are usually higher than using a standard wireless credit card terminal.
MOTO (Mail Order, Telephone Order) credit card processing is for exactly that: businesses that handle mail orders or telephone orders. This type of processing is much less popular due to the popularity of website ordering. Merchant service providers usually view MOTO processing as a higher risk of chargeback or fraud because the customers card is not physically required, in any way, to process the transaction. Typically rates for MOTO accounts are higher than standard retail or online merchant accounts.
A new type of card processing emerging, due to the popularity of smart phones, is mobile card processing. This type of processing is very similar to wireless credit card processing in the sense that a business can travel to the customers and accept payments on the fly. The difference is, however, the processing program is downloaded as an app on a smart phone (Android, Blackberry, or iPhone). The app’s have many more features than a standard hand-held credit card terminal and give users the ability to view detailed reports, customer search queries, and more, from the palm of their hand. The most popular mobile credit card processing app is Payware Mobile for the iPhone. Payware Mobile is available through many merchant service providers.
I hope this article helped you discover that there are many options available to you in the method you accept credit card payments. Stay tuned for more articles explaining facets of merchant accounts and credit card processing. Thanks for reading.
Merchant Credit Card Terminals
Merchant credit card terminals are electronic devices offering fast, low-cost means to authorize and process credit card transactions. They are very commonly used in retail stores and restaurants. Most merchant credit card terminals accept all major credit, debit, and private-label cards offering low-cost credit card authorization, check guarantee, and data capture for a range of retail applications.
A terminal to process credit cards is a great investment to your business. Most merchant credit card terminals support Internet-based services such as e-mail, electronic signature, interactive electronic coupons, onscreen advertising, cash management reporting, and e-commerce. They make transactions more convenient, faster, and accurate for both customers and merchants.
At first, merchant credit card processing terminals verify your customer’s card information. Then they withdraw money for the purchase from the customer?s account and deposit it directly into your merchant account. The most important units of merchant credit card terminals are card readers with a small keypad and display. They require power supply and can communicate through a telephone line. Modern terminals are powered by batteries and can communicate wireless or over the Internet. They come in several sizes and prices.
There are many types of merchant credit card terminals: traditional terminals (with or without printers), wireless terminals, and virtual or software-based terminals. Merchants with a permanent place of business need a basic card reader terminal. In this case, the terminal is placed right on the counter where all transactions take place. For businesses that constantly change locations, a wireless credit card processing terminal is a good choice. It is suitable for merchants who are always on the go.
Millions of merchant credit card terminals ship annually and the majority have the same basic functions and features. It can only be used in combination with a merchant account that processes credit card transactions. Businesses already using credit card terminals need to buy extra equipments to maintain additional services such as debit card transactions and issuing and accepting gift cards. A number of terminals also support additional forms of payment such as electronic bank transfers and phone cards.