Processing Transactions Online

Online transactions are conducted in a card-not-present environment where merchants cannot physically inspect the cards and verify their validity, nor can they verify the identity of the cardholders. The online transaction process has evolved to meet these challenges. In order to understand how eCommerce transactions are processed, merchants need to first know these core processing actions:

• Authorization. Authorization is the process by which the card issuer approves (or declines) a card purchase. The authorization takes place at the time the transaction occurs.
• Authentication. Authentication is the process of verification of the cardholder and the card. During the authorization process the merchant should use fraud prevention services to validate the cardholder's identity and the card being used.
• Settlement. Once a product has been shipped or a service provided to the customer, the merchant can initiate the settlement of a transaction through their acquiring bank and trigger the transfer of funds into the merchant account.

There are several participants in an online card transaction:

• Card Issuer. Card issuer is a financial institution that issues payment cards and contracts with its cardholders for repayment of transactions.
• Cardholder. Cardholder is an authorized user of payment cards. In order to make an online purchase, the cardholder must use a web browser to interact with the eCommerce website.
• Acquiring Bank. Acquiring bank (also called an acquirer or a merchant bank) is a financial institution that contracts with merchants to accept and process cards for payment of products and services.
• ECommerce Merchant. ECommerce merchant is an authorized acceptor of payment cards for the payment of products or services it provides.
• Processor. Processor is a financial institution that provides authorization, clearing or settlement services for merchants and merchant banks.
• Merchant Services Provider. A merchant services provider is a third party agent that has a direct relationship with a merchant. The merchant services provider processes or transmits card account numbers on behalf of the merchant. A merchant services provider may also provide services such as shopping carts, payment gateways, website hosting, data storage and clearing and settlement messages.
• Credit Card Association. The Credit Card Associations of Visa and MasterCard support the electronic transmission of all of their card authorizations between acquiring banks and card issuers and facilitate the settlement of funds.

Merchant Services Total Merchant Services Article Source: http://EzineArticles.com/?expert=Joe_Cole

High Risk Merchant Account

A High Risk Merchant account is a special account provided by banks to online businesses that have a high credit rate or a business that has a high turnover, large volumes of sales along with enhanced risk of fraud.

There is a horde of online services that ensure acquiring a high risk merchant account for the high risk businesses. Today there are a number of offshore merchant account providers providing such businesses with fully tailored merchant account services. These websites offer both high risk and low risk merchant accounts and credit card processing services for all kinds of businesses globally. Such services hold tie- ups with banks around the world to provide the best merchant account for high risk and low risk businesses anywhere. We also have an international gateway.

Businesses considered as high risk includes travel, adult, adult internet, amusement & recreation services, online casino and internet gambling providers, auto rental, lotteries, check cashing services, coin shops, collection agencies, dating, detective services, door-to-door sales, downloading of software and many more. Such an account can be procured from a domestic merchant account provider including a designated bank or a credit card processor or from any international or offshore agency involved in related activity.

A high risk or an offshore merchant account require some amount of a monetary deposit or requires the company to be in operation for a specific period of time. Such an account can be obtained with very limited hassles and requirements.

The charges/ rates applicable for are high risk merchant account are relatively higher compared to a standard merchant account. However, the offshore merchant account providers can assure that the setup fee is charged for the high risk merchant account whereas fees for the other type of accounts are very small, sometimes with no setup fee at all. They also assure speedy delivery of funds.

Merchant Accounts providers specialize in providing high risk merchant account and payment processing solutions in the field of regular e-commerce, telemarketing, software, replica, travel, online pharmacy etc. Article Source: http://EzineArticles.com/?expert=Tariq_Ansari

Merchant Services Offers Innovative Solutions

Merchant services enables businesses to accept a variety of payments including:

Visa

MasterCard

Discover

American Express

Gift Cards

Benefits to Merchant Services customers include

Cost effective payment alternatives

Secure method of payment

Improved cash flow

24 - 48 hour funds availability

Accelerated collection of receivables

The cost of setting up and maintaining a merchant account depends on who you choose to provide your merchant account services and how many middlemen to go through. It is better to eliminate costs through the use of one robust system, the greater the advantage to have with the credit card processing solution. Merchant account services enable you to begin processing credit cards immediately through a merchant account!

Merchant Services understands the most essential modes of payments including paperless money i.e. acceptance of credit cards. For such transaction to accomplish one need to have merchant account which is most vital aspect these days. To serve these payment acceptance needs and one can furnish his or her business with a merchant account to accept credit cards. Merchant services offer comprehensive line of payment solution of the business credit card acceptance, debit card acceptance and check acceptance for all type of businesses including retail store fronts, restaurants, hotels, stores via mail, telephone or internet.
Merchant services offer you to become self-efficient in profitable opportunities surely making dynamic growth.

For more information on merchant services,please visit http://www.paynetsystems.com

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