Ecommerce Merchant Accounts: Streamline Credit Card Payments
An ecommerce merchant needs ecommerce merchant account in order to process internet payments from customers. New SSL (Secure Socket Layer) technologies have made internet payment very widespread around the world, allowing payment transactions to be made without fear of information theft. It has smoothed the way for website merchandise and service sales.
In order to provide online trade transactions, an ecommerce merchant must set up, with a payment gateway, ecommerce merchant account to handle any credit or debit card transactions. These transactions occur in mere seconds for approvals or denials, and payments only take a few days to get to the merchant’s banking account.
There are several companies who provide ecommerce merchant account so that website owners can streamline their sales efforts by being able to accept credit card payments. They charge various fees to the merchants for their services. Some will charge an annual fee, application fees, set up fees, programming and maintenance fees; some do not. Other charges may occur for transactions, over limit fees, returns (charge backs), checks by phone, and checking account change fees.
Basic fees usually are for: internet transactions (about 4.95%), monthly service, batch processing, address verification, voice authorizations, some surcharges (corporate and international), chargebacks, ACH rejects, and PCI compliance. Fess are generally kept as low as possible, but you can see why some merchants do not accept credit cards because of fees. However, accepting credit cards is an essential in today’s market.
When the merchant sets up an ecommerce account with a payment gateway, they are ready for business. They enter, securely, their banking account information with the gateway, and agree to gateway terms and fees. The gateway is a clearing house of sorts for credit card transactions.
At a point of sale, the merchant sends up the request for credit card approval, and the gateway electronically sends the request to the credit card association for approval or denial. The association transmits either a denial or approval number back to the gateway, and on to the merchant. Once approved, the credit card interchange forwards that information on to the credit card company for payment. The payment is then credited by the credit card association to the merchant’s banking account. The merchant will, at the close of business day, send all their approvals in to their bank and payment is then made into that merchant’s bank account.
It is a simple but complex series of electronic communications that helps streamline payments by credit or debit cards for ecommerce merchants. It is highly advisable for a website merchant to have ecommerce merchant account in order to run their internet business successfully and have the best possibility to attract customers by accepting credit card payments. The secure SSL technology adds credibility to the merchant website and protects the customer from fraud and internet information theft, while giving the customer peace of mind so they will proceed with the purchase.
An ecommerce account is highly recommended for any merchant’s website sales success. It is easy to set up and use, and works to benefit both the merchant and the customer.