Online Retail Business: How Credit Card Processing Is Done
If you have your own retail business and you are thinking of moving it online, then you should learn how credit cards are processed in online transactions. Your first task is to find a trustworthy payment processing company that will set up and maintain the flow for you. The programs and codes the firms use may not be exactly the same but the principle behind their methods are the same and these are to gather specific information, authorize credit card use and transfer of payment.
Collection of sale information
When a buyer of your products goes to your page and has decided on the things he or she wants to buy, the he or she is made to press a buy now button or a similar button. There is some information that that will be required by the credit card companies or the banks to allow payment transfer and these will be the information that will be asked from the buyer. This page may not differ much from the previous page but in most cases, the server of this page is different from the usual pages. The buyer is now in a more secure server where he or she can enter information without the fear of being spied on by sniffers and crackers.
Checking of the information and authorization from financial institutions
After the information has been gathered, the payment processor then inspects if the credit card account exists and if there is still enough credits in it to make the purchase. The payment processing firm then sends a request to the financial institution such as the credit card company or bank to allow the firm to transfer money from the buyer to the seller. The bank or credit card company can either allow the transaction or deny it if there are problems with the account or if there are some information that are incorrect.
Sending of payment
Before the payment or the transfer of money is made, the purchase details is confirmed with the buyer including the amount that will be taken from his or he credit card. Transfer of the specified amount then follows together with a confirmation of the transfer sent to the buyer through email or other means of electronic communication.
In the event the that purchase is not authorized by the bank or credit card company, the customer is informed and other payment options are presented as an alternative. You can avail of this kind of service by signing up for a Merchant Account in your preferred payment processing company. They will guide you in how to set up the technology like Credit Card POS that will make your online business run smoothly.
Collection of sale information
When a buyer of your products goes to your page and has decided on the things he or she wants to buy, the he or she is made to press a buy now button or a similar button. There is some information that that will be required by the credit card companies or the banks to allow payment transfer and these will be the information that will be asked from the buyer. This page may not differ much from the previous page but in most cases, the server of this page is different from the usual pages. The buyer is now in a more secure server where he or she can enter information without the fear of being spied on by sniffers and crackers.
Checking of the information and authorization from financial institutions
After the information has been gathered, the payment processor then inspects if the credit card account exists and if there is still enough credits in it to make the purchase. The payment processing firm then sends a request to the financial institution such as the credit card company or bank to allow the firm to transfer money from the buyer to the seller. The bank or credit card company can either allow the transaction or deny it if there are problems with the account or if there are some information that are incorrect.
Sending of payment
Before the payment or the transfer of money is made, the purchase details is confirmed with the buyer including the amount that will be taken from his or he credit card. Transfer of the specified amount then follows together with a confirmation of the transfer sent to the buyer through email or other means of electronic communication.
In the event the that purchase is not authorized by the bank or credit card company, the customer is informed and other payment options are presented as an alternative. You can avail of this kind of service by signing up for a Merchant Account in your preferred payment processing company. They will guide you in how to set up the technology like Credit Card POS that will make your online business run smoothly.
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