Doing a job is hard; everyone wants to be their own boss! Now if you really think about it, starting a business is harder, keeping everything you have to do in mind. It all seems a piece of cake from the outside, but you must be real dedicated, a never giving up attitude and a sharp mind to excel in the business market.
You have the said determination then what?
Having the impetus to succeed is well and good, now you must know certain tricks to actually set foot in the market and stay afloat. Opening a store in your locality limits your reach. In the era of the World Wide Web, why restrict your business when sky is the limit. You must open an online store to maximize your reach and expand your business globally.
The idea of an online store is really catching up and every business, big or small wants to be there on the Internet. Setting up a business on the Internet is a critical stage and warrants the best of everything. Now, when you start selling products and services on your website, you need to accept payments from your customer to complete the deal. This is what you need a payment gateway, processing services and an ecommerce merchant account for.
What is a merchant account?
Internet shoppers normally support business websites that accept all credit card payments; hence the increasing needs for easy to operate merchant accounts is felt for businesses today. On their part, merchant account providers are always re-inventing themselves to provide complete security for credit card processing as credit card fraudulency is on the rise today more than ever.
A merchant account is essentially an agreement or an arrangement between a bank and a merchant, or a merchant account provider and a merchant. The merchant wishes to accept payments for his services/merchandise through card payments of a specific credit card brand. The gaining bank extends credit to the merchant, processes the customer’s credit card data and approves the exchange. This is the procedure of the merchant account credit card processing system.
Notwithstanding such direct dealing, merchant accounts may likewise operate through intermediaries, called service providers. In this instance, the intermediary provides payment services to its clients, who have merchant accounts with them. This is an entire systematic framework that works to bring out the best in the online shopping for both the businesses and customers.
How it all happens – The explanation
The payment takes place through a payment gateway. A payment gateway is basically a place where you pay, like the trade counter out a retail unit. The difference, however, is that each shop may have its own particular money counter, yet in this system, several virtual shops (e-commerce sites) use the same payment gateway whose sole purpose is to channel the details of the customer’s credit card.
Merchant account providers sign in and key in credit card numbers (which are encrypted). Alternatively, the payment gateway might be linked to the shopping cart on the merchant account provider’s site. Either way, this player in the online payment processing barely takes a minute.
The customer places an order alongside credit card data, the data is forwarded to the payment gateway, which further sends it to the merchant’s getting bank. The bank sends the data to the card affiliation, which thusly sends it to the issuing bank of the card, which checks that balance available with the customer. The issuing bank then approves or rejects the exchange, giving a reason to rejection.
Several merchant account services create better sale opportunities and the relevant providers offer free credit card terminals. There are others that permit free merchant accounts with low exchange fees.
The exchange fee and the markdown rate (both together make up the aggregate processing fee charged by the account service provider) are lower for credit card terminal swipes. Then there are also discounted ecommerce merchant accounts that charge a very low fee for the bouquet of credit card choices you provide to your customers.
Avoiding frauds is a must for transparent services
A secured payment gateway and the credit or debit card processor is seemingly the backbone of the online business. It provides a necessary platform for the customers to pay for the products and services they are buying by using their credit or debit cards and it is important for the business owners to get the money for the products they are selling. However the frauds are on the rise and business owners must pay special attention avoid these tricksters and frauds in choosing the credit card processors for their websites.
As a business owner who wants simply the best of everything for their website, choose a reliable merchant account and processing service provider to make sure that your business is transparent and your customers are offered a secured and smooth transaction every time they use their cards to make a payment.