Internetcreditcardprocessing.net - Merchant Service Solutions

Internet Credit Card Processing

So you’re thinking about processing credit cards online?
There are a number of different things to think about when considering internet credit card processing. First things first though; we need to clarify what exactly internet credit card processing means.

There are three basic scenarios where a merchant would use the internet to process credit cards:

A merchant is selling to things directly to consumers through their website

A merchant is taking orders in person or over the phone but later enters the credit card information into a secure virtual terminal

A retail merchant has a POS system or credit card terminal that connects to the internet to authorize their credit cards.
Because each situation is very unique, I will outline how each scenario works. Chances are, any questions you have will be answered in the next few paragraphs. If not, you can always call or email us to get help with your questions.

E Commerce

In the mid and late 1990s we were just starting to see television advertising for websites. Very few companies had websites and even fewer offered a website that consumers could buy goods through. Today it has been said that a business without a website it committing corporate suicide. A business’ web presence is a huge component of their image and often total sales volume.

Today the internet is being used so frequently by consumers that we’re even seeing fast food companies offer online ordering for pick up or delivery. By the time you click “buy” your order is being worked on. Clicking “buy” is what we’re going to focus on.

While it is possible to allow your customers to buy online with their checking accounts, chances are if you’re selling products online, you are accepting credit cards as the only form of payment. In order to do this will need three things: an online merchant account, a payment gateway and a shopping cart. It is important that these three components can integrate with one another. It is entirely possible to get a shopping cart that won’t work with your payment gateway or a processor that can’t tie into your shopping cart.

While it is rare, my suggestion is to find a company that offers an “all in one” solution. There are a few companies out there will allow you to do your credit card processing through their own proprietary gateway and often times even provide a shopping cart that will fit your needs.

If you are selling a complex grouping of products you may require a complex shopping cart that you will have to buy separately. If you are simply selling a handful of products, or many products but only one size (for example) you could most likely use an all in one solution that will allow you to put a “pay now” button on your website.

If you have an e Commerce site that you are (or will be) selling goods through it is important to pick the right internet credit card processing company. As with any business, it’s important to trust the company, check out their references and make sure they offer your company what you need. Remember, they are the ones who will be filling your business bank account.

I Sell Things in Person But Don’t Swipe Credit Cards OR I Take Credit Card Numbers By Phone

There are many sizable businesses today that are home based. The fact is, with the speed of business today and the tools available online, the need for a brick and mortar location has diminished. For that reason and many others, many merchant elect to take credit card numbers down and run the transaction from their home omputer at a later time. In order to do this, you need to have a virtual terminal.

A virtual terminal (or payment gateway) is a website that a business owner can log in to and run credit card transactions online. It is very common for landscaping companies, karate studios, building companies, maintenance companies, wholesale companies, landlords and a large variety of other businesses to use a virtual terminal to do their internet credit card processing.

This is a very attractive option if you accept payments over the phone or in a remote environment (such as a customer’s home or a fair or show). It is also incredibly useful if your business accepts recurring payments. Many virtual terminals allow you to program in a payment schedule so you can automatically charge your customer’s card every week, month, quarter etc. This is incredibly helpful for businesses that have monthly maintenance or membership fees.

While most virtual terminals charge an additional fee for the recurring billing function, there are some out there that do not. In many cases, the benefits of a virtual terminal can stretch far beyond the convenience of recurring billing. The right systems can actually help you manage your customer database and store your customer’s information for you. In some cases you can even email your clients reminders AND invoices online. And while it’s not the right fit for every business, some systems even allow a swipe device to be plugged in via USB to qualify merchants for a better rate.

Retail Environment

Most brick and mortar businesses today accept credit cards. Most often merchants use a POS system or a stand alone terminal. Both of these solutions could take advantage of internet credit card processing. The fact is, today most businesses use phone lines.

Almost all POS systems have the option of running transactions online. While many credit card terminals can, many cannot. If you have a retail business that runs a high number of transactions every month (several thousand), you would benefit greatly from using an online system. When you process credit cards through an internet connection the transaction takes roughly 2-5 seconds to authorize. When you process through a phone line it generally takes 7-10 seconds to authorize a credit card transaction.

If you are getting ready to buy a credit card terminal, you should keep in mind how an IP connection might benefit you. It is also good to entertain the possibility of using a virtual terminal with a USB swipe device. This will allow you to take advantage of internet credit card processing, but also many other features that traditional terminals do not offer.

A virtual terminal in a retail environment can help build an email list, set up recurring charges and capture more customer information than you otherwise would. It also allows you to access that information from anywhere. Unlike a credit card terminal where you would keep your receipts locked in a drawer, with the right online platform all of that information can be stored securely online.