If you sell your products online through a shopping cart or an online store, you will need a merchant account with a bank to be able to accept credit card payments.
Other options to accept payments online on the website also include internet banking. If you intend using your independent merchant account to process such payments, you’ll need to apply for one such account have the facility of money transfer through credit cards and netbanking approved.
It is common for banks to charge a larger transaction fee for transaction online because they’re supposed to be a riskier since there is no physical presentation of the credit card.
However, there are now many safeguards in place such as issuing of a PIN sent directly to the mobile of the user before the transaction can be authorized and programs like MasterCard/VISA secure which require registration of the credit card and entry of a special password to verify the transaction.
The service provider may also charge monthly statement and transaction fees on each of your purchase.
When you apply unit be asked to estimate the amount of average sales and order size as well as the monthly average sale volume for your online store. You may be asked to keep a percentage of the amount in your account to cover fraud transactions and charge backs.
Sometimes chargebacks occur for credit card transactions online. Chargebacks are sale reversal by the credit card companies when the customer disputes the charge.
The charge backs can either be a result of a fraud or otherwise. To help reduce charge backs you should let your customers know exactly what will appear on their credit card bill so as to not mistake the transaction as something they did not order. If you’re not sure that any transaction is legitimate you should call the credit card company or bank before finalizing the sale.
Another interesting option of accepting payments online is without opening your own merchant account.
Services like PayPal process credit card payments on your behalf. In return for a percentage of the cost of the transaction. This percentage amount is fairly reasonable and may only be slightly higher than in merchant account if at all. You only have to pay when you make a sale and there is not monthly fee involved.
Depending upon the amount your merchant account provider charges as compared to online providers such as PayPal, the sales volume of your business, you can choose one of the either options. One reason in favor of using a merchant account rather than PayPal is that it gives you is this a more serious business image online. Almost anybody can use PayPal whereas having your own merchant account is more professional and businesslike.
Using A Secured Website For Processing Online Payments
When doing business online especially when accepting payments online date take care to implement proper security measures to ensure that the information about your consumers and their financial details is safe from hackers.
Selling online through online stores is the great opportunity thanks to which several small businesses can expand beyond the physical limitations of a physical store. Even small businesses can reach far out not ingest the country but also internationally.
However, consumers only feel safe in buying online from a store if the when they feel comfortable about the security of their credit card details and any other sensitive personal or financial information they need to input.
Customers are told to watch out for features like a website protected by SSL certificate which is a security clearance before feeding in their credit card details.
If you cannot assure your consumer of the security measure your website and online store takes to undertake safeguarding their personal information, they will be hesitant to buy.
Consumers are well aware of the threat of identity theft and credit card fraud. These incidents are even more rampant on the Internet. This is where the secure sockets layer, SSL certificate comes in handy. The SSL technology encrypts the customer payment information on the Internet as it travels to you which prevents the credit card data and other sensitive information from hackers.
Having a security enabled website also tells the customers that you are who you say you are. In order to get an SSL certificate for your website you need to apply to a certified authority such as VeriSign. In order to do so you will have to provide a business credentials as well as make a payment of $200-$400 per year for the SSL certificate. Having such a certificate puts more faith in the consumer regarding your identity and the credibility of your business.
If you happen to store your customers personal details and data in your database such as credit card numbers, you will need additional protection such as a firewall to protect this information. This is a highly professional job and you are best off consulting a web hosting company or an Internet security expert firm to implement these security features for your website, server and database.