Management of e-commerce Credit Card payments

Transactions over the internet is more risky than face to face transactions that neither the card nor the cardholder is present at the payment information collected by the merchant. The merchant is not able either to physically check card or obtain a signature from the card holder. To protect e-commerce requires merchants from fraudulent transactions, credit card associations that traders follow a specific payment management guidelines and provide tools to minimize the risk. All merchants engaged in e-commerce companies:

Must approve all transactions. The word is for all online transactions are zero, which means that permission is required for all, regardless of the transaction amount. If the medium is available on the account and the card is reported lost or stolen, do not have transaction likely authorized by the card issuer. It is important to Web-based merchants understand that the acceptance of the authorization does not constitute proof that the transaction is legitimate and not fraud.

E-commerce transactions, the delivery date is considered to be the transaction date. Web-based merchants have up to seven days to get a permit before the transaction date.

Subject to credit card associations card-not-present chargeback rules and regulations. Web-based merchants can be liable for fraudulent transactions, even if a permit has been obtained. The reason is that the risk of fraud is greater due to lacking physical card and card holder who cannot provide a signature. E-commerce merchants can minimize their exposure to fraud by adopting appropriate short approval process and implement fraud prevention tools available.

Can participate in verified by Visa and MasterCard SecureCode. Verified by Visa and MasterCard SecureCode was developed by the credit card associations to improve e-commerce transaction security by authenticating card holder and to obtain protection against Chargebacks are fraudulent transactions. In addition, cardholders will benefit from the increased security.

Must input a correct electronic commerce indicator (ECI) for all e-commerce transactions. ECI identifies the transaction as e-commerce and is listed as a part of the authorization request. This makes the card issuer for more informed decision on the permit.

Must be in accordance with Payment Card Industry (PCI) Data Security Standard (DSS). PCI DSS is a result of joint efforts by major credit card companies and associations, and offers a single approach to safeguarding sensitive personal account data used in credit card transactions.

Never must store card security control codes. Card security verification codes (CSVC) is the three-digit codes on the back of Visa, MasterCard, and Diners cards and 4-digit codes are on the front of American Express cards. Visa requires their CSVCs card verification value 2 (CVV2), MasterCard calls its CSVCs card verification codes 2 (CVC2) and Discover and American Express cards identification codes (CID). Merchants should never save CSVCs under any circumstances.

Online credit card processing-how to accept credit cards-Ecommerce 101

1998 (With 2000 or so), I worked for small businesses (called PaymentNet/then Signio) managed online transactions. VeriSign bought later this company and the product team I led the integrated "front-end" the part that took the credit card information and sent it to our servers for processing. Product's name is Payflow Pro, you might have heard of it?

I will limit this discussion to show/MasterCard credit cards--Amex and other works a bit differently.

The first is the bank that the consumer's credit card is linked to. This bank is known as the "acquiring institution" ... it handles "credit"-you have on your credit card.

It is, therefore, the merchant bank. This is where the business is opening a handelsfartyg account to accept various forms of credit cards.

Merchant account is connected to another company called a "processor". This "hidden" layer is the company that actually moving funds from the acquiring institution to the merchant account (known as the "solution"). The processor handles also speak with the acquiring institution to ensure that the customer has funds available (a process known as permit).

Some well-known credit card processors is the first Data Merchant Services (FDMS), Nova and PaymentTech.

Sitting on the processor is one of two primary systems, either a swipe-card terminal (like those you see in Wal-Mart) or a "gateway" companies doing essentially the same thing, but on the Internet-that's what Verisign payment services and Authorize.Net.

Note that the waters are even muddier in many cases, such as Wells Fargo can serve as each bit confused in some circumstances.

So what is actually happening when you buy something at Wal-Mart uses a credit card?

(a)), you place your items from "basket" to counter and scan them Treasury system provides total.

(b)) you pull your card via a "terminal", which reads # outside the magnetic stripe.

c) Wal-Mart calls up their processor and ask if you have the available funds on your credit card. CPU calls to your bank (the acquiring institution). If funds are available on the card, they are marked as "held" in your account (permit), unless the transaction is declined (yuk). Authorizations are resolved never to tie up your credit card funds over a period of time, usually 10 days or so.

(d)) at the end of the day, select Wal-Mart all transactions they want to receive money and sends them to their processor in a "party". The processor then contact the recipient institutions and transfer of funds to your merchant bank-which may make the funds available immediately (in a day or two), can keep them for a while or may hold funds in a "rolling reserve" (to keep certain assets back in the event that a consumer is fighting the transaction is called a chargeback).

Replace cash register in the online world, with an online shopping cart and the electronic credit card terminal with is called a "gateway" for example, Payflow or Authorize.Net. the process is basically the same, with a little more complicated.

Be sure to "a la carte" with e-commerce credit card services: If the port you chose not to speak to the processor and your bank uses, or your software can not talk to the gateway, you're hosed. The situation was much more common (things don't work together) back in the mid/late 90 's than it is today. Most of the "first and use" banks (such as your local branch) has, however, still not a clue about online credit card processing ... If they try to sell a "rented terminal", it is best to run the other way and find a solution from the reputable source on the Internet.

As an online merchant does accept credit cards, you need to really know is that all of the services through a single solution will usually together seemlessly.