How does online credit card processing work with e-commerce stores?
Payment gateway account(the online card processor) and internet merchant accounts, although separate components of credit card processing, they are both necessary and work together to handle payments automatically for online merchants.
An internet merchant will usually want to select the shopping cart and web site hosting company and then order their merchant account based on the gateways that are available in the shopping cart. Internet Merchant Accounts are separate bank accounts for the merchant that are approved and capable of receiving credit card payments from credit card providers. Internet merchant accounts typically do not hold funds for an extended period of time such as your typical bank account but usually transfer payments to another bank account designated by the internet merchant on a daily basis.
The Payment Gateway Account is the online credit card processor or transaction handler which is capable of hooking into credit card accounts belonging to the online shopper and the merchant's internet merchant account (above). The payment gateway handles the verification and transfer requests. The term account when used with "payment gateway" is not a funds holding account but rather a "service account" that typically has a log in where you can configure your payment gateway settings.
Credit Card Processing - Standard Routine
1) The consumers complete their orders via the merchants web store.
2) The shopping cart program on the web host computer gathers the order information, compiling it into a form that the credit card processing company expects.
3) The shopping cart transmits the formatted order from the web host to the credit card processor (payment gateway). The credit card processor checks that the information it received about the order to be sure it has everything it needs to continue processing the transaction.
4) The customer's credit card company validates the card and the account.
5) The credit card processor now tells the shopping cart program at the web host whether or not the transaction was successful
6) Internet merchant accounts collect the funds for a specified period of time and make scheduled transfers to the merchant's regular bank account and the credit card processing transaction is complete.
To know more, visit here
An internet merchant will usually want to select the shopping cart and web site hosting company and then order their merchant account based on the gateways that are available in the shopping cart. Internet Merchant Accounts are separate bank accounts for the merchant that are approved and capable of receiving credit card payments from credit card providers. Internet merchant accounts typically do not hold funds for an extended period of time such as your typical bank account but usually transfer payments to another bank account designated by the internet merchant on a daily basis.
The Payment Gateway Account is the online credit card processor or transaction handler which is capable of hooking into credit card accounts belonging to the online shopper and the merchant's internet merchant account (above). The payment gateway handles the verification and transfer requests. The term account when used with "payment gateway" is not a funds holding account but rather a "service account" that typically has a log in where you can configure your payment gateway settings.
Credit Card Processing - Standard Routine
1) The consumers complete their orders via the merchants web store.
2) The shopping cart program on the web host computer gathers the order information, compiling it into a form that the credit card processing company expects.
3) The shopping cart transmits the formatted order from the web host to the credit card processor (payment gateway). The credit card processor checks that the information it received about the order to be sure it has everything it needs to continue processing the transaction.
4) The customer's credit card company validates the card and the account.
5) The credit card processor now tells the shopping cart program at the web host whether or not the transaction was successful
6) Internet merchant accounts collect the funds for a specified period of time and make scheduled transfers to the merchant's regular bank account and the credit card processing transaction is complete.
To know more, visit here
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