Processors Online

2008-10-03 14:47:12

( Online Shopping )



You probably used a credit card at least once in your life. Do you ever wonder how your payments are processed. Knowing how it works can help you avoid online fraud so read on.

Here is how it works. You apply for a credit card from an issuer, maybe your bank or a credit union. These establishments are just issuers. They don't really do the processing part.

When you make a purchase, what happens is that your account will be verified if you do have a good credit card account. If you do, then a charge will be made. The store where you used the credit card will get payment and you will have a charge on your records.

Now with online processors, it is almost the same except that the physical presence of the credit card is not required. Instead, additional information will be required to process the payment. Online order processing systems will often ask not just he usual credit card number, expiry date and name of card holder but also will ask for the digit CVV and sometimes the address of the account holder.

But you have to be careful even with these security measures in place in transacting business with processors online. Always be careful when you give out personal information and be sure that the company you're dealing with has been in business for quite some time.

Also, read the refund policy. Getting refunds when using processors online could take forever so make sure that you understand the refund policy before making any purchase. A refund is somewhat a point against the merchant and they would like to avoid it as much as possible.

Processors online are like the wholesaler of credit. The banks and other credit card issuers are just retailers of credit servicing the end consumers.


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