Online Credit Card Processing - How It Works

People in every corner of the globe are looking into the world of online credit card processing. This is because online credit card processing is typically faster, easier and offers a number of unique features over its traditional counterpart. However, there are trade offs about online credit card processing that must be considered.

It is said that online credit card processing is meant to provide you with less paperwork and is more convenient and saves you time, but it really is only a part of the process of issuing credit cards. The initial application can be done online, but eventually the paperwork will need to be done as this is basically necessary for all issued credit cards.

Safety must be taken into consideration for both you and the company. There are risks inherent in providing immediate credit based upon a form and database inquiry. Chief among these is identity theft and the possibility of data fraud. Therefore, a number of companies decline to offer an immediate decision, waiting until proper confirmation.

It seems easy for businesses to process credit cards. You go to the cashier, or you hit the button that takes you to the checkout page on a website, and before you know it, your items are paid for and you can move on to your next project. Even though it may seem simple from the aspect of the shopper, behind the scenes it's very complex. In those few seconds between the time the credit card number is recorded by the merchant and approved by the credit agency many things transpire.

A transaction is initiated with passing the credit card's magnetic stripe through a terminal, or manually entering the card number into the system by either the merchant or by the owner of the card. The transaction details enter into the processor's network through these processes.

When you use a credit card, a set process occurs to complete the transaction. First, an authorization request is sent to the issuing bank's system. Upon receipt of the request the bank confirms that this is a valid credit card account and that a positive balance exists in the customer's account. After this validation takes place, the bank reduces the amount in the request from the account. When this process is complete, the bank will deposit the same amount in the merchant's account. This occurs usually within the same business day. Because of the speed and accuracy of the process, a credit card processing equipment business is a thriving enterprise.

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online credit card processing? Our website has more information on credit card processing for business, as well as credit card processing equipment

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Choosing the Best Business Online Credit Card Processing Tool

Any online retail business that does not have a credit card processor set up should definitely consider this as an option. Often times web business owners feel overwhelmed with the prospect of choosing a credit card processor for their business.

Many of them feel that the fees associated with working with an online processor are too much and not worth the benefits. However if you closely weigh all your options you can see that if you carefully research credit card processors you can find one that best fits your business.

It may not seem like it but any inconvenience that you provide your customers at the sell point can result in loss of sales. At first this may not seem like a huge deal but these minor losses can add up to a substantial decrease in revenue.

There are some simple things that you can do to eliminate the choices and make the processes headache free. First off make sure that you do not get involved with a processing company that will charge you fees just to review your application or get you up and running.

Your next step will be to gauge the level of customer service that a credit card processor will provide you. Obviously not every business is the same and all have different needs. You can do this by talking with your service rep about simple questions at first and testing their response time and effort to earn your business.

On the technical side one thing that is critical to find out is what kind of back services your credit card processor has in place. If they are doing server maintenance of if something goes down how long before their backup system kicks in. If you go with a company that does not guarantee a failsafe back up you can be stuck unable to process payments for several hours. This can seriously hurt business and needs to be addressed seriously.

You also want to look for as many options as possible when it actually comes to receiving payments. In addition to credit card processing the ability to accept checks by internet, phone or fax is always a great option.

Finally you should obviously consider the cost of the credit card processing company you're going to select. At this point you should regard the transaction fees, for instances if in your business you deal with a lot of minor transactions low fees are of major concern. On the other hand if you deal with fewer transactions but at higher costs you may be looking for other features as well.

Overall as tedious as this process is it must be taken seriously in order for your business to prosper. It's always a safe bet to go with a popular company that has a proven track record. This information is easily obtainable by checking consumer advocate sites like the BBB and others. Another method to use is to find prominent sites in your niche and see what service they are using.

Jamie Marks is a senior editor and weekly contributor at a popular Work at Home Opportunities website. For more information read about Home Rebate Processor and Rebate Processing Jobs.

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Mobile Online Credit Card Processing Equipment

In today's business environment, credit card processing equipment is an essential tool for completing an online transaction. Compared to traditional credit card processing services, mobile credit card processing ensures faster payment, increases overall sales and credibility, and saves a lot of money. A well maintained mobile credit card processing equipment is a must for such transactions. Mobile credit card machines are useful for those merchants who like to take their business to the customers. The functioning of a mobile credit card machine is simple. By swiping the customer's credit card through the mobile credit card processing equipment, all the transaction processes are done automatically in real time. When the merchant gets the authorization, a printed receipt is given to the customer.

Mobile credit card processing equipment helps in accepting payments through online credit cards as well as by telephone. With its state-of-the-art technology, mobile credit card processing equipment provides a secure payment gateway that enables fraud screening and also real time reporting of every transaction. For an online transaction, only a virtual terminal is needed. This enables you to get all the services through the Internet.

Mobile credit card processing equipment has certain added advantages when compared to traditional wireless merchant accounts. They include low monthly charges, low processing fee and no monthly minimum processing charge. Today, the wireless mobile credit card processing equipment is the latest in convenience and portability.

Many business concerns sign a contract with mobile credit card processing equipment companies for their services. These contracts might be for 2 to 5 years, a fact which is often unknown to the firm. Consequently, if a firm needs to terminate a contract, a cancellation fee is charged by these companies. So care should be while choosing the services of such companies.

Credit Card Processing provides detailed information on Credit Card Processing, Online Credit Card Processing, Credit Card Processing Software, Wireless Credit Card Processing and more. Credit Card Processing is affiliated with Wireless Credit Card Terminals.

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3 Online Credit Card Processing Insider Tips

When you want to choose a credit card processing company to help you sell your products online and accept credit card orders, it is important to pay attention to some important tips to make the best choice. After all, you are building your entire business with ONE important goal in mind: Making a sale.

So when your customer is ready to order, the service you use to accept the order can make or break the sale.

If their payment processing service lacks some important factors or is not easy to use enough, you may lose your valuable sale that you were about to make.

So here are 3 important tips to consider when choosing a credit card processing solution...

Tip #1: How Fast Do They Give You Your Money?

When you make a sale, you have earned a profit which is great. But what is also important is how fast you'll receive your money.

For example when using a service like PayPal, you will get your money instantly - the moment the customer's order is processed successfully at PayPal.

So you can spend it, send it to someone else, or withdraw it to your bank account very quickly. But most other credit card processing companies don't pay you so fast.

For example ClickBank, which is a popular service, sends out your checks every two weeks. Some other companies even will pay you less often - like once a month.

So it is good to pay attention to their policy and compare to choose the best service with fastest payouts.

Tip #2: What Is Their Per Transaction Fee?

Credit card processing companies usually charge anywhere from 2% to as high as 10% in some of them.

So as you see, 8% difference in fees per sale is a big difference. You can maximize your net profits by finding a merchant service provider that has the lowest fee.

Tip #3: Test Their Customer Support

Here is a smart technique to find out if they really have a good and responsible support system...

Simply contact them and pretend you are a customer who has recently made a purchase but hasn't received the product yet. You can use a fake name and email address if you want. Then see their reaction, how they handle your problem, and how polite and patient they are.

You can also try complaining a lot to them and acting as a "difficult customer" would, to test how they deal with this type of your customers in the future. Are they polite? Are they patient and tolerate even the most difficult-to-satisfy customers?

This is a very important test to do before going with a certain payment processing company, because you are going to leave your valued customers billing issue in their hands - which a VERY important matter.

So you want to make sure they are capable of it.

About the Author:
Ladan Lashkari is an Internet marketing expert and is giving away FREE tips and reviews about top credit card processing services to help you choose the solution best for YOUR special needs.

You can check out her website to find out helpful tips and honest reviews to choose an easy online payment solution.

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Online Credit Card Processing Is A Wise E-Business Investment

If you're in business for yourself on the internet you've probably been told that to make money you have to spend money. A more accurate way to think about it would be to make money you have to invest money -- as in investing back into your Web-based business in the form of services that will increase sales and profits.

This brings us to the decision whether or not to add credit card processing service to your e-store. It would seem to be a no-brainer. Studies have shown that e-stores processing plastic see increased traffic, repeat business, sales and profits. More than 80% of all purchases made over the Web are paid for with a credit card. In the last two months of 2007, the holiday shopping period, close to $30 billion in sales were racked up by e-retailers.

Those numbers are hard to ignore. And while there are going to be some expenses involved with the ability to accept payments online, with a little research you can make a cost-effective choice that helps you maximize the investment.

Indeed, before you even get close to making a decision on a merchant account company, spend some time cruising through a half-dozen provider Web sites. Most sites will include a list of charges and fees associated with doing business with them - and you might be surprised at the differences. Compare charges for things like transaction fees, internet processing gateway fees and statement/customer services fees, among others.

Be cautious of credit card processing companies that charge an application fee, which can vary from $100-300. The major players, as a rule, do not feel the need to levy this. These are the companies whose reputation for service and support mean they don't need to boost their bottom lines with a lot of add-on fees.

Indeed, when it comes to the costs associated with merchant account services the ability to offer discounts can be attributed to one of two factors. Some companies say they're cheaper, but make the money with hidden costs and fees. Great providers are able to come in at a lower price point because their customer retention allows them to do so, and those are the companies you'll want to talk to when you're ready to accept payments online.

And speaking of costs be wary of doing business with any concern that charges for calls to the technical support department. Good service after the sale should not have a price tag, and this applies to getting help when something's not working properly and slowing the progress of your business. Plus, unfettered access to support insures that small problems are dealt with before they have a chance to grow into big ones.

Make sure the company you sign up with is also the company that will be processing the transactions. Some use third-party processors that can slow down the amount of time it takes money to be put into your account. And improved cash flow is one more advantage of allowing card processing on your Web store.

A preferred way to sleuth out the good credit card processing companies is to get references and make some calls. A satisfied customer will tell you all you need to know, and should be more believable than what a company will say about itself.

Another good indicator is what the industry says about a provider. Companies like Apple and America Online have ratings for e-commerce providers that give unbiased third-party reviews for companies that give a Web business an avenue to accept payments online.

Jim Osterman is a Web content developer with Charge.com. Charge.com offers a host of credit card processing services for merchants wanting to accept payments online

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