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The payment process in which
funds are transferred from the customers’ credit
card into your bank account is a quick and easy
process.
And although everything is done automatically,
it’s still important to know and understand how
the process works in order to know what’s really
going on behind the payment processing scene.
It all starts with the customer.
After the customer clicks on the “Add to cart”
button, they’re taken to the shopping cart entry
page where the customer will enter in their
credit card, billing and shipping information as
well.
Once they click on that last “Compete order”
button, their credit card information is
instantly sent via a Secure Socket Layer (SSL)
to a payment gateway processor i.e. Authorize.net. |
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The payment gateway processor is the middle man
between your shopping cart software and the
merchant account bank. And they will make sure
that all of your customers’ credit card and
billing information is correct. For without
such, the credit card transaction will not go
through.
Authorize.net will also carry out a vigorous
fraud detection process in order to ensure that
fraudulent transactions do not occur.
Authorize.net will then approve and authorize
the transaction and then send the credit card
transaction information to your merchant account
provider through another Secure Socket Layer (SSL)
connection.
Your merchant account bank will then send your
customers’ credit card information to Master
Card or Visa in order to commence the process of
collecting the funds.
Authorize.net will also send an email order
confirmation message to the customer and to you,
the merchant. And the entire process takes place
almost instantly over a secured and encrypted
connection.
If you’re dealing with a private merchant
account bank, then your customers’ funds will be
deposited into your personal or business bank
account within 48 to 72 hours, (minus a small
credit card transaction fee).
If you’re using PayPal as your payment solution
provider then your customers’ funds will be
deposited into your PayPal account immediately,
(minus a small credit card transaction fee).
Then you can use those funds to purchase
products or transfer those funds directly to
your personal or business bank account. And a
transfer from your PayPal account to your own
bank account normally takes place within 48
hours.
When using Paypal, there is no third party
gateway processor such as Authroize.net, which
means less fees and quicker processing times.
Instead PayPal approves, authorizes and
processes the entire transaction, but does not
automatically deposit those funds into your own
bank account, (which you can do manually at any
time of the day).
The payment process and the process of receiving
payments are simple. And best of all, the entire
process is done atomically and almost
instantaneously, leaving you, the merchant,
worry free.
All you have to do is make the sale and let the
payment processor take care of the rest. |
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All About Merchant Accounts |
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Using PayPal as a Payment Processing Solution |
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All Merchant Account Providers |
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