“Questions and Answers” Posts

What Is Online Credit Card Processing?

What Is Online Credit Card Processing?

Online credit card processing refers to card-not-present payments that are completed on an e-commerce website via a Payment Gateway. The gateway is either provided by or integrated with a Merchant Service Provider. To be successful in online credit card processing, there are certain services and tools that are required, while others are nice to have. Learn about the providers involved in online credit card processing, requirements and how you can simplify back-end e-commerce operations. Payment Gateways and More Before you can start online credit card processing, you need to set up the following: Website Hosting: The technology and services needed…

What Is a Payment Gateway?

What Is a Payment Gateway?

Did you make an online purchase this week? Then you used a Payment Gateway without even knowing it. A Payment Gateway provides a safe method of transferring cardholder data from a website to a payment network for processing. It communicates the confirmation of sufficient funds and the transaction approval back to the website. It’s the technical glue that connects the point of sale to the payment network and is unique to card-not-present, online payments. Now, if you’re looking to accept online payments, you may be wondering how a Payment Gateway fits into the process. After all, there are…

What Is Credit Card Interchange?

What Is Credit Card Interchange?

Credit card Interchange is the wholesale cost to process a credit card transaction and is typically comprised of a percentage of the transaction plus a fixed dollar amount (e.g., 0.5% + $0.10). The cost directly relates to the level of risk or reward associated with the transaction. For example, a business rewards card will have a higher Interchange cost than a debit card. Interchange is set by the card brands (Visa, MasterCard, Discover and American Express) and is subject to changes biannually when Interchange guides are updated and released. It’s important to have a basic understanding of…

What Are E-Commerce Payment Systems?

What Are E-Commerce Payment Systems?

E-commerce payment systems are softwares that facilitate the authorization of online payments. These systems are typically comprised of a shopping cart provider, a Payment Gateway and a Merchant Service Provider that work together to provide a fully functioning e-commerce platform. E-Commerce Payment Systems Defined Shopping Cart Shopping cart software is as its name suggests, a place for customers to add items to purchase, but it’s also so much more as an e-commerce payment system. Your shopping cart software will display your products and make it easy and intuitive to make an online purchase. Think of it as a virtual…