All About Credit Card Payment Processing for Your Online StoreThe 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.
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All About Credit Card Payment Processing for Your Online Store
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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. 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).
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).
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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.
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.