E-commerce is the in thing these days. Many online shops are becoming a one stop shop and leaving the customers with a fantastic experience. Not only this, the shops too are experiencing an amazing growth. The customers have moved from PC’s to laptops to mobiles for shopping. All the customers look for is an exclusiveness of the product online and its value. However, the expectations of customers are rising by the minute. The customers are comfortable in making online payments as it is the easiest and the quickest way. Usually, payments that are processed online are faster and there is no risk of saving any credit card information. The credit card processors will charge your business for every transaction. The transaction funds will be transferred from the customer’s account to your merchant account in the case a transaction is processed successfully. A unique bank account is used to exclusively hold the funds received from credit card and debit card transactions; that is, your merchant account. As a business need, the high risk merchant account is set up with the payment provider to accept online payments. Funds accumulate in the merchants account. These funds are then transferred to the organisations bank account, regularly.
The payment processors offer you a shopping cart for your ecommerce website. When the customer has made their choice, put the products in the shopping cart and is ready to make an online payment, a form appears where the customer will submit the credit card details. The transaction request along with the credit card information is sent to the payment gateway. The service that receives payment request then sends it to the payment processor that validates the credit card details. It is operated by the payment service provider (credit card processor). The provider will use a secure processing system to verify the customer’s credit card details. Once the information is verified, information is sent to complete the transaction in the form of a funds transfer request. The request is processed and funds are transferred from the purchaser’s account to the credit card merchant account, if the credentials of the purchaser are valid. Once the transaction is approved information is notified on the ecommerce website. The merchant’s website is updated with records of the transaction. In case, the credit card details are incorrect the funds will not be transferred. At the same time the website is notified of the transaction decline status.
The ecommerce credit card processing charges a fee per transaction as well as other fees like the setup fees or monthly fees, this is not done free of cost. Every ecommerce business requires online payments processing systems in place to be successful – merchant account, account with the payment service provider and a web page button to initiate the shopping experience. The customers are looking for authenticity in everything the online companies do, which is where the trust has been built with credit card processing. The next step may be a change in payment methods from credit cards to a different form maybe something even more automated.