Payment Gateway and Credit Card Processing

Payment gateway is a term that every one dealing with credit card processing is aware of. With the rise in electronic means of money transactions, paying through debit or credit card has become a normal event for majority of us. But for merchants and small businessman understanding the intricacies of the money transfer through these means is a must.

While the whole process of swiping the card takes not more than a few seconds, there are quite a few factors which affect the money transfer process. So choosing a proper processor is a must to make the complete process secure and fast. It should also be hassle free without any hidden charges or any other fees. Payment processing speed and security could be a deal breaker with the customer if it is not up to the mark. Accepting credit card is not enough, you should also look for a merchant account services. A few payment processing companies have a high merchant account rate but provide mediocre merchant services.

A proper Credit Card processor provides support to every aspect of your business starting from merchant account processing by providing you with merchant processing account. The processing of credit cards and debit cards with a fast response from both the front-end and backend is the key to a proper business merchant processing. The charges may vary according to the payment gateway, but you can find yourself relieved of the hassles you otherwise had to take. They take care of the details of cards along many devices like mobile device, POS, etc., and verify the data according the card holders name. The transfer request is sent almost immediately for crediting the same amount to the merchant’s account.

These companies are already developing their commitment towards the security of transfers. Even the small businesses are relying more on the cashless transaction, thus the small business merchant support is also being provided by many such processors. They accept credit card payments and process them taking utmost care to provide security and speed.

To assure the merchant of the security and speed of the processing, the companies are engaging their efforts in making the payment gateway more encrypted. Thus any chances of forgery or hacking are obliterated. With the latest 128-bit SSL algorithm, only the merchant and customer have the right to know the required part of the transaction, I. e. PIN number or identification number on the part of customer and another PIN number for the merchant. This classified information provide the base of the secure mode of payment.

Knowing the basics of any operation can make the most of your business, and the Card processors are taking care of that. Carrying cash is not at all mandatory for the customers nowadays and merchants are providing enough facilities to make the payment options more efficient with a bit of help from technology through card processing companies. Above all, payment gateway continues to be the ultimate protector of the security of the transaction.

Online Pharmacy Credit Card Processing

High risk management accounts by their very name will always be treated with a degree of caution by the banks and other financial institutions but they are manageable nonetheless. As evidence shows however where the identity of customers cannot be verified banks will be extremely cautious and may refuse applications as a result to minimize those risks. The primary risk factors which are taken into account tend to be the potential of fraudulent transactions and charge backs. Furthermore banks and financial institutions will classify merchant accounts based on the risk factors involved.

Nowadays, online offshore businesses have become widely acceptable as a profitable source of income. The concept of online offshore business is quite simple. A commodity that is expensive and rare in a particular country might be cheap and abundantly available in another country. So, an online merchant arranges for the transfer of this commodity to customers who are in need of this product. Thereby, the customer is able to obtain the product easily and rather inexpensively than that he could have purchased from his own country.

The US and the UK governments have imposed restrictions on the trade of pharmaceutical products considering security reasons. This has resulted in inflated prices of pharmaceuticals within these respective countries. Online pharmacy merchants have identified the potential profit that is hidden in these countries. They have pharmacies based on countries where the cost of manufacture and trade is rather less compared to the US and the UK. So, all they have to do is arrange for proper transfer of the pharmaceuticals from these countries to potential customers in the US and the UK.

But this online offshore business poses an eminent flaw. In these transactions there is no security that the customers are dealing with legitimate suppliers and vice versa. Hence, the quality of the products obtained is always a concern for the customer. The World Wide Web is filled with money thirsty hyenas who will stoop to any extent to get a chunk out of your hard earned money. Also, there is the possibility that some frauds might pose as a potential customer and acquire the pharmaceuticals and sell them in the market illegally.

All these risk factors included have made banks and financial institutions to classify online pharmacy credit card processing as high risk merchant accounts. Therefore, these online pharmacy merchants find themselves in a hard position to find a credit card processor to look after their online transactions. If they go ahead with the wrong international bank or credit card processor, they will see themselves out of the business very soon. So, this is a delicate area which requires much attention and research.

Today there are many high risk merchant acquiring banks that provide merchant accounts for online pharmacy credit card processing. If you can convince these banks that you are a legitimate online pharmacy merchant, setting up and online pharmacy credit card processing account is very easy. In cases where the merchants conduct an inbound or outbound telemarketing business that sells pharmaceuticals over the phone, acquiring a merchant account can get a bit difficult, but is not impossible. Summing up, things have improved now enabling an online pharmacy merchant to run his business hassle free in terms of establishing his merchant account.

Credit Card Processing: How the System Works

Establishing a merchant account for your business enterprise is the wisest financial decision you will ever make for the growth, expansion and success of your business. Once you’ve set up a merchant account, you can accept credit and debit cards payments from your clients for your products and / or services. You can also arrange to accept online and mobile banking payments for your products and / or services.

A merchant account opens up new avenues for your business; therefore, giving your business many more opportunities to flourish. But, have you ever understood how the credit card processing system works? Have you tried to perceive the complexities of the players involved in the process and the intricacies of the system?

While it is not entirely essential for you to know the inside and outside of the card processing system because your Merchant Service Provider will do the needful for you; it is good for you to acquaint yourself with the system on a general basis.

The Participants Involved in a Card Transaction

A typical credit or debit card transaction involves the following players:

• The customer

• The merchant

• The payment gateway

• The customer’s credit card issuer

• The credit card interchange

• The processor at the acquiring bank

• The merchant’s acquiring bank

The Route the Money Takes from the Customer to the Merchant

Let’s take an example to understand how the card processing system works.

Suppose that a customer walks into a clothing store and she finds a bag that catches her eye. She immediately proceeds to the payment counter and makes a payment of $100 towards her purchase with her cards.

The cashier at the merchant’s store accepts the cards and uses a card swiping machine to set the process into motion.

• The $100 amount makes its first stop at the payment gateway where the payment is first authorized with a minor deduction in the amount.

• Now, $99 travels to the appropriate processor and after a minor deduction is submitted to the card interchange as $98.5.

• Once the transaction gets a clear at the interchange, it moves on to the issuing bank with a further deduction where the issuing bank verifies the availability of funds in the customer’s credit / debit card.

If the transaction is declined, it makes its journey back to the customer from here.

• If the transaction is approved, $98 reaches the processor at the acquiring bank, just one step closer to the merchant account.

• Once authorized, $97.5 gets deposited into the merchant’s account, which is now at the merchant’s disposal.

(The figures and fees involved in card processing are based on the number of players in the process, merchant type, card type and risk factors)

In the present age, quite a number of payments are made electronically, especially with the extensive use of credit and debit cards and online funds transfer. Although typical card processing takes seven participants, the entire transaction amazing takes a maximum of five seconds for approval.