Internet Merchant Account
Not the Only Item for Online Processing
Internet processing can be puzzling to any business just beginning to take consumer payments online. A traditional retail setting uses a merchant account and a terminal to complete each transaction. To complete online transactions, you need both an internet merchant account and a payment gateway. Nevertheless, despite the misconception held by many business owners that these two components are the same, they are, in fact, distinct elements essential for this type of processing. The merchant account must be present to transfer the funds from the customer to your bank. Internet gateways move the data across all necessary channels to obtain verification and authorization. Processing complications will be present if the gateway and shopping cart are not compatible. Your shopping cart contains configuration settings for multiple types of gateways. A provider can also recommend compatible choices to any business just beginning to handle online transactions.
Transpires When You Accept Online Payments?
You must have the right type of account and gateway before you can begin to accept online payments. The merchant portion is a separate banking account required to receive funds from credit providers. Funds are not held but instead transferred to your financial institution each day. A payment gateway can be provided by the same company supplying merchant services or by a separate provider. Transactions cannot be verified and transferred without this component. In a typical web setting, the customer goes to your website to create an order. A shopping cart keeps track of the order and then sends the formatted order to the processor via the internet gateway. After all data is entered, it undergoes thorough checks before being forwarded to the customer’s credit provider. The provider then verifies the card and account’s authenticity. Subsequently, a response is sent, indicating whether the charge has been cleared or not. Denials come with an attached code, enabling the processor to handle the transaction appropriately. Afterward, the system relays this information to the shopping cart program, providing the consumer with either a confirmation or a prompt for an alternative payment method.
Process Behind Online Payment Acceptance
The credit processor sends a settlement request to the merchant account provider who deposits the payment into the created account. The service provider then transfers the money to your bank based on a predetermined schedule. A significant portion of the work involved in accepting online payments is imperceptible to both the customer and your business. It all unfolds in real time while the customer awaits their confirmation and shipping details. In the event of a payment denial, customers receive a prompt to use an alternative reimbursement method, which initiates the entire process again. The customer receives all necessary information and can go on with their day. If you know the difference between the account and gateway, the rest becomes easier to understand. AVPS professionals can answer any questions you may have about internet merchant accounts or e-commerce transaction processing. Call today to see how we can make your transition to website payment acceptance easier.
