Payments Processing For Online Store

2007-04-12 11:34:06

( Online Shopping )



There are a number of crucial decisions you have to make when you launch your online store. One of these is the payments processing of your customer's purchase. Your online store must have the capability of processing credit cards, checks, and other methods of payment. Supporting real-time credit card payments is a must so you should decide on whether you do it by opening a merchant account or via third-party payment service providers.

If you choose to open a merchant account for processing credit cards directly with a bank, you will find it complicated and tedious. Financial information, policy review, credit evaluation, and putting up cash for security deposit are just some of the requirements for opening a credit card merchant account. A secure server must also be set up to communicate with the bank's server and exchange credit card information. This type of credit card payments processing needs a sizeable amount of money for your computer software and hardware systems.

You may find payments processing through third-party payment service providers more cost-effective and convenient if you only process small transaction volumes. Your customer will be transferred to the provider's payments processing gateway as soon as they are ready to pay. The customer's credit card data will not be accessible to you because the provider will take care of it. You would have to send the data of your customer to the provider and in turn, the provider sends back the data to your server.

These payments processing providers will charge fees like initial set-up fee, transaction fee of the amount payable, and monthly account fee. You should find time to shop around so you get services at competitive rates. You will find some of these providers offering their services to the local merchants as well as to international merchants.


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