Using Ecommerce Merchant Service Providers for Customer Payment Processing

An ecommerce site allows customers to view merchandise, add desired items to a shopping cart, and securely pay for the products. The online payment platform securely runs the consumer’s credit or debit card while storing their personal shipping information. Merchant accounts are the medium for transferring payments from the issuing bank to your financial account. Ecommerce merchant service providers may offer individual services or complete packages. You can purchase the shopping cart functionality as well as other services separately if desired. It was not until almost the year 2000 that technology opened up the world of ecommerce. Faster connection speeds, uninterrupted access, and increased retail opportunities made shopping online possible. Today, ecommerce makes up a large percentage of overall business sales. Online business has advanced tremendously thus increasing the need for affordable merchant processing solutions. In the beginning, assistance was very limited regarding shopping carts, security platforms, and service providers. Now there are abundant options available to companies. Processing has been expanded to include marketing assistance, consumer management, and advanced forms of payment processing. Businesses are recognizing internet retail as a way to increase their customer base for additional profit growth.

Where Do Ecommerce Merchant Services Fit Into the Big Picture?

Ecommerce merchant services are used to accept online payments from consumers. Internet sales increase revenues through a wider customer base. These services may be initiated for website transactions specifically or even to simply accept in store credit card payments. Many customers today prefer to have a credit option available when purchasing a product. A merchant account is the first step in setting up your website or store with this payment capability. It can be acquired through your local bank, a service provider, or third party companies. Any financial institution can provide this account; however, each will have their own application criteria for determining the risk of account approval. Service providers have additional types of accounts for high risk situations. A bank will not approve the request for an account if they believe it could be a complication. An internet gateway provider is needed as well to actually process each online transaction. Payments are deposited into the merchant account after processing.

Technical assistance is needed to connect the gateway to your business website. This involves incorporating shopping cart functionality to allow customer selection of products they would like to purchase. Entry of credit information is also part of this website functionality. Ecommerce merchant services validate the card information when it is entered by the customer. The transaction details are sent to the credit issuer who verifies the information. Once this verification is complete, the approval or denial code is sent to the gateway. A displayed message lets the customer know whether or not the payment when through. Processed payments are transmitted to the merchant account a few days later. Gateways make it easy for web, telephone, and retail companies to accept customer credit cards. Ecommerce merchant service providers assist with the process by offering accounts, website assistance, and other components your business will need to get started.