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The Best Way To Accept Credit Card Payments Online

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In this day and age, consumers would rather pay for goods and services with computers and handheld electronic devices rather than in the person. It is more convenient, private, and secure. That being said, it is key for most businesses to have the capability to accept credit card payments online.

It is no longer a simple luxury. It is an absolute necessity. Without it, the chances are high that a business will not survive.

The best way to accept credit card payments online is to partner with a payment processing company that will provide a merchant account and payment gateway. Although this may seem a bit confusing, there is absolutely no need to worry. Most business owners and operators are unfamiliar with these terms. Payment Savvy is here to explain them.

The Merchant Account

In order to accept payments online, organizations should have a merchant account in place. The merchant accounts serves as a special type of bank account that temporarily holds the funds from credit and debit card transactions. The funds are then transferred to the company business account on a regularly scheduled basis.

The merchant account is provided by a payment processing company such as Payment Savvy. It should be noted that the merchant account is a legal and binding agreement between the business and the payment provider. The business owner or operator must sign a contract that states specific terms and conditions.

The Payment Gateway

When a credit or debit card payment is conducted online, information is sent electronically to a location known as the payment gateway. At this point it is determined if there is enough credit available, or funds in the account to complete the transaction. For example, a customer pays for goods with his or her credit card online. The total purchase is $100. However, the customer only has $80 of available credit.

The transaction is then voided for insufficient funds. Another example is, a customer pays for goods with his or her debit card. The total purchase is $100. The customer has over $100 in his or her bank account. The transaction is then approved. The payment gateway then transfers the funds from the cardholder directly to the merchant account. Typically speaking, the payment gateway and merchant account are provided by the payment processor.

The Payment Processor

The payment processor is a company that specializes in processing credit and debit card transactions. They are the intermediary between the customer, the major credit card companies, and the business. The major credit card companies are American Express, Discover, MasterCard, and Visa. The payment processor typically supplies the business with the merchant account and payment gateway.

This includes all of the required software, hardware (if needed) and customer/tech support.  The payment processor handles the transaction request, sends the authorization and settlement files from the major credit card companies, distributes the funds to the merchant accounts. They also are in charge of any chargebacks, requests, and settlements.

Payment Savvy specializes in providing companies with the ability to accept credit card payments online. Please contact Payment Savvy today to review all options, obtain answers to your questions, and to apply for the best way to accept payments online. Our company is only successful when your business grows because of our products and services. We look forward to hearing from you and partnering with your business.

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