How Online Credit Card Processing Works
Due to the fact that online purchases are becoming more and more common these days, it is important for you to educate yourself regarding the process of online credit card processing. Many people find online purchasing to e the most convenient way to shop, and generally customers will use their debit or credit cards to make this type of purchase. As a matter of fact, the most common way for people to make their purchases online is through the use of a credit card.
There is a certain process that al credit cards go through during each transaction. In most cases there will be certain requirements that every Ecommerce website must have in order to complete such a transaction. There always needs to be an established account with a payment gateway. There must additionally be a vital tear sheet to the gateway that can be drawn from the appropriate financial institution. Additionally, there will have to be a server that is enabled by SSL.
Generally, gateways online will offer an API for the process of the transaction. However, in some instances there will be a web based interface offered. Even though a great deal of these transactions occur on a regular basis, each one will have the same basic steps to complete.
When it comes to online credit card processing, the customer's credit card information is collecting using an HTML format. Once the person's information has been collected, it gets transferred to the server to get processed. At this point, the customer will be prompted to enter the required details on the form, and then in order to submit it they will need to click on a submit button.
Once the server receives the data it will be sent to specific areas within the server to get processed. At this point, the information provided by the customer has to get validated. Once the code has been checked it changes into a different format that can be easily understood by the gateway. This is how the information gets checked for validity.
Once it has been established that there are sufficient funds to handle the transaction there will be a message of confirmation sent to the code for processing. Generally the merchant will be charged a fee for this. Sometimes the merchant will have to pay on a per transaction basis, and other times there will be a flat fee to be paid on a monthly basis.
After arriving at the gateway, it will then go through the corresponding clearing house. The decision regarding which clearing house to choose will depend upon what type of credit card is being used and the issuing bank of the card. The clearing houses can transfer money from bank to bank. There will usually be a five percent charge for this service.
The clearing house is then responsible for transferring money from the customer's account to that of the merchant. Generally, the consumer's bank will charge a fee for the service of credit card processing as well, but at this point the entire transaction is complete.
There is a certain process that al credit cards go through during each transaction. In most cases there will be certain requirements that every Ecommerce website must have in order to complete such a transaction. There always needs to be an established account with a payment gateway. There must additionally be a vital tear sheet to the gateway that can be drawn from the appropriate financial institution. Additionally, there will have to be a server that is enabled by SSL.
Generally, gateways online will offer an API for the process of the transaction. However, in some instances there will be a web based interface offered. Even though a great deal of these transactions occur on a regular basis, each one will have the same basic steps to complete.
When it comes to online credit card processing, the customer's credit card information is collecting using an HTML format. Once the person's information has been collected, it gets transferred to the server to get processed. At this point, the customer will be prompted to enter the required details on the form, and then in order to submit it they will need to click on a submit button.
Once the server receives the data it will be sent to specific areas within the server to get processed. At this point, the information provided by the customer has to get validated. Once the code has been checked it changes into a different format that can be easily understood by the gateway. This is how the information gets checked for validity.
Once it has been established that there are sufficient funds to handle the transaction there will be a message of confirmation sent to the code for processing. Generally the merchant will be charged a fee for this. Sometimes the merchant will have to pay on a per transaction basis, and other times there will be a flat fee to be paid on a monthly basis.
After arriving at the gateway, it will then go through the corresponding clearing house. The decision regarding which clearing house to choose will depend upon what type of credit card is being used and the issuing bank of the card. The clearing houses can transfer money from bank to bank. There will usually be a five percent charge for this service.
The clearing house is then responsible for transferring money from the customer's account to that of the merchant. Generally, the consumer's bank will charge a fee for the service of credit card processing as well, but at this point the entire transaction is complete.
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