An online shopping cart system with credit card
payment processing is essential to the success of a commercial website.
With online credit card payment processing, transactions can occur
24 hours a day at the convenience of the customer. To accept credit
card payments automatically from your web site, a merchant account
and payment gateway or similar payment processing service is required.
Real Time Credit Card Processing
There are numerous online payment processing services available.
Some are more costly than others. Typically the cost is relative
to the risk. If you have decent credit and have access to discounted
merchant services through Costco/Nova or a U.S. bank merchant account,
you can couple it with Authorize.Net
payment gateway service at about half the cost of the quick
qualify all-in-one services.
Two Types Of Credit Card Processing Services
There are essentially two types of credit card processing systems.
The oldest and least expensive method is where the merchant bank
is a separate business entity from the payment gateway service.
However, in recent years, numerous credit card processing companies
have emerged that offer all-in-one solutions. The most cost effective
credit card processing solutions are usually the older, more established
systems where the merchant bank or financial institution is separate
from the payment gateway service. The all-in-one payment processors
are quick and easy, but the transaction fees may be double or triple
the combined cost of a conventional merchant account and payment
gateway.
Merchant Account & Payment Gateway - Cost Effective
Many large banks and financial institutions offer merchant accounts.
Their discount rate (fee based upon a percentage of each sale) and
transactions fees are typically lower than with the all-in-one payment
processors. Merchant deposits are made to your checking account
electronically. These merchant financial institutions are required
to follow strict Mastercard/Visa regulations. Merchant account providers
have historically served as banks and have left the actual processing
of payments to payment gateway services such as Authorize.Net. Nowadays,
there is a trend towards merchant account providers teaming up with
payment gateway services and offering complete merchant account
and payment processing packages, but they are still essentially
two separate businesses working co-operatively.
Apply for Authorize.Net payment gateway service through AShop
Software for low fees!
All In One Payment Processing Services - Easy Qualification
& Fast Setup
Along with the evolution of Internet marketing and online merchants,
new types of payment processing services are emerging. These new
payment processing services are not necessarily banks, although
some of them are owned or backed by banks from various countries,
and they aren't regulated in the same way as traditional U.S. merchant
institutions. They are geared towards easy qualification and fast
setup. Of course, along with this convenience comes a much higher
cost. A popular example is 2CheckOut.
Their fees are typically higher than the combined total of a separate
bank and gateway, but they rarely turn anyone down based upon credit
history.
PayPal
PayPal is an
all-in-one type of payment processing service. It is a quick inexpensive
way to begin accepting payments online. There are no credit rating
requirements and there are no minimum monthly expenses. In order
to make a payment through PayPal, your customers must first sign-up
for an account, which takes time and may be confusing for some people.
Then, they have to deposit money into their PayPal account. This
can be done by credit card, but many credit card companies charge
the customer a cash advance fee.
Note:
AShop Deluxe shopping cart software supports many popular payment
processors.
Manual Payment Systems
Some customers would rather mail a check or provide a credit card
number via phone or fax to the merchant, who then processes the
order manually during normal business hours. However, manual orders
for e-business transactions are increasingly becoming the minority,
with good reason. Online order processing is more efficient for
the merchant, and more convenient for the customer.
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