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In this day and age, consumers would rather pay for goods and services with computers and handheld electronic devices than in person. It is more convenient, private, and secure. That being said, it is vital 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 to provide a merchant account and payment gateway. Although this may seem a bit confusing, there is no need to worry. Most business owners and operators are unfamiliar with these terms. Payment Savvy is here to explain them.
How to Accept Credit Card Payments Online?
There are a few different ways that you can accept credit card payments online. The most popular methods are through a third–party processor like Payment Savvy or Stripe, or by setting up a merchant account with a bank or other financial institution.
If you go the third-party processor route, you’ll need to sign up for an account and then add a payment button to your website. When a customer clicks on the button, they’ll be redirected to the processor’s website to enter their payment information. The processor will then deposit the funds into your account, minus a small fee.
If you set up a merchant account, you’ll be able to process credit card payments directly on your website. You’ll need to get a merchant account ID from your bank or other financial institution, and then add a payment form to your website. When a customer fills out the form and submits their payment, the funds will be deposited directly into your account.
Accepting Credit Card Payments Online
Credit card payments are becoming more popular in the world of ecommerce. The use of credit cards has increased over the last few years. This is because people are more comfortable with online transactions, and they want to avoid carrying cash around.
There are many ways to accept credit card payments online, but one of the most popular methods is via a payment gateway service.
The Merchant Account
To accept payments online, organizations should have a merchant account in place. The merchant account serves as the central platform to process 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 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 us to review all options, obtain answers to your questions, and 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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