“Questions and Answers” Posts

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…

What Is MOTO Credit Card Processing?

What Is MOTO Credit Card Processing?

MOTO stands for Mail Order/Telephone Order and is a credit card processing pricing setup on a Tiered plan. MOTO credit card processing is best suited for businesses that primarily accept card-not-present transactions: Examples include e-commerce and delivery-based businesses. In contrast, Retail pricing is appropriate when the majority of transactions occur in-person. It’s important to establish the correct setup, which depends on the type of business you run. Failing to do so could result in higher rates, incorrect risk assessments and lost savings opportunities. How Tiered Pricing Works With Tiered pricing, transactions are bundled into one of three buckets:…

How Does ACH Payment Processing Work?

How Does ACH Payment Processing Work?

ACH payment processing operates via the ACH network. Every ACH transaction goes through a seven-step process involving six entities. These entities include the originator, the receiver, the originating depository financial institution (ODFI), the receiving depository financial institution (RDFI), an ACH operator and the National Automated Clearing House Association (NACHA). Below, we define each entity involved and the technical steps to ACH payment processing. Entities Involved in ACH Payment Processing Originator: An individual, corporation or other entity that initiates a transaction using the ACH network. Receiver: An individual, corporation or other entity that receives an ACH payment. ODFI: A financial institution…

Who Regulates Credit Card Processing Companies?

Who Regulates Credit Card Processing Companies?

Credit card processing companies, including Merchant Service Providers and Payment Facilitators alike, are regulated by a number of organizations. The Card Association Network, the Payment Card Industry Data Security Standard (PCI DSS), the National Automated Clearing House (NACHA), sponsor banks and the federal government all play a role in credit card processing regulations. Below we outline how each player is involved, what they regulate and, most importantly, the ways in which processing companies are not regulated. Credit Card Processing Company Regulators Card Association Network The Card Association Network is comprised of four major credit card networks: Visa, MasterCard, Discover and…

What Is EMV Credit Card Processing?

What Is EMV Credit Card Processing?

EMV credit card processing entails a series of steps to authenticate a payment by ‘dipping’ or ‘inserting’ an EMV-chip card. To correctly process an EMV credit card, a level-3 EMV certified card reader is required. To achieve proper EMV credit card processing, you must take a number of pre-transaction steps. Depending on your role in the payment process, these steps may be extensive or non-existent. EMV Credit Card Processing Preparation Merchant Service Providers A Merchant Service Provider is an organization that issues individual merchant accounts to businesses processing credit cards. Typically, a provider will also offer the equipment needed to…