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9 Replies Last post: Jun 12, 2008 10:39 AM by amspcs

How do I accept credit cards for on-line payments?

Jun 7, 2008 4:23 PM

Bridge 364 posts since
Jun 3, 2008

I was hoping for some basic advice and shared experiences here.

A freind of mine ask me to help him set up his site for e-commerce. I have set up sites using Payapl before but he needs a true e-commerce solution.

Can you walk me though "gateways" , "merchant accounts" etc.

Do we use Verisign or Authorize.net (or some other solution) and what's the difference/what do they do?

Thanks,
Greg

Tags: credit_cards, e-commerce, ecommerce Report as inappropriate

Lighthouse24 2,396 posts since
Oct 10, 2007

1. Re: How do I accept credit cards for on-line payments? Jun 7, 2008 4:57 PM

We've had some good threads in the past on this subject with knowledgeable contributors (not me -- my experience is strictly PayPal and the solution offered through BoA). You've probably read through those already, but if not, you can use the "search this site" in the upper right on terms like "ecommerce" and "gateway" and find them easily.

I'm sure some of those same contributors will join in here over the next few days and offer specific guidance for your friend's business.

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amspcs 514 posts since
Oct 18, 2007

2. Re: How do I accept credit cards for on-line payments? Jun 7, 2008 6:02 PM

Hello, Bridge,

We have a web page on our site that pretty clearly explains how ecommerce payment processing works, complete with explanations and flow chart. Please go to:

http://www.merchantservices-help.com/ecommerce.html

Here's the short answer: You need a merchant account AND a payment gateway (such as authorize.net or Verisign AND probably a shopping cart (Volusion, GoDaddy, etc.) All are three distinct entitites, although many offer 'bundled' proprietary solutions which is something you'd want to avoid--proprietary solutions are serve the provider, not the end user.

There are a number of contributors to this forum who can provide advise and solutions in any or all of these areas, including ourselves. We'd love to provide details on our services if you need them. Feel free to email questions. Good luck.

Barry G
AMS, Inc.
amspcs@juno.com
www.MerchantServices-help.com

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NatOnline 670 posts since
Oct 10, 2007

3. Re: How do I accept credit cards for on-line payments? Jun 7, 2008 5:09 PM

Here a versatile system cart that I am using on my e-commerce. You can integrate this system cart on whatevever site:

Using your own design with our Generic shopping cart software
http://www.ecommercetemplates.com/help/de
sign.asp
and on this link more information
http://www.ecommercetemplates.com/help/ec
ommplus/about.asp

I hope that will help you

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nMoncrief 47 posts since
Mar 24, 2008

4. Re: How do I accept credit cards for on-line payments? Jun 8, 2008 4:36 AM

I'd like to direct you to an article I wrote on HubPages that answers your questions. It explains the roles of the merchant account provider, the gateway provider, the acquiring bank, etc. It also explains why, in my opinion, your friend would be better off with a true e-commerce solution as opposed to using the one-size-fits-all approach of PayPal. Here's the URL:

http://hubpages.com/hub/e-commerce-vs-bri
ck-and-mortar-credit-card-payments-explain
ed

If you have more questions, please post them, or feel free to contact me directly.

Neil Moncrief
www.CreekFinancial.com
866-587-8618

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Bridge 364 posts since
Jun 3, 2008

5. Re: How do I accept credit cards for on-line payments? Jun 8, 2008 10:52 AM

in response to: nMoncrief

Dear Neil,

Thanks for your response. I have not looked at your article yet but I did browse your web site. I would suggest maybe putting the article on your web site somewhere. I could not find a good overviews of what exactly you do for ecommerce companies on your website and specifically how you compare to other providers (for what ever services your provide).

What is the specific flow of information/services needed? shopping cart - credit card processing - merchant account - bank account? what does each one do?

Frankly, if I wanted to search the web for answers, I would have already. I asked here looking for some initial guidence on the process.

By, the way, I said I told my friend he needed something more than PayPal because of his volume. but for low volume ecommerce sites, I believe PayPal is an excellent solution and I have used it myself. They have simplified the process for non-tech people.

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amspcs 514 posts since
Oct 18, 2007

6. Re: How do I accept credit cards for on-line payments? Jun 8, 2008 11:56 AM

in response to: Bridge

This blurb should explain all components of ecommerce credit card processing:

These are the five basic components you'll need for your ecommerce enabled website:

1. An internet Merchant account in order to accept credit card payment processing on your website2. Web hosting3. A digital certificate4. An internet Gateway5. Shopping cart software

Lets explain each of these items one-at-a-time:

1.An Internet Credit Card Merchant Processing Account* An Internet Merchant Account is entirely different from a retail

Merchant Account in almost every respect. This is because the
technology is different, the fraud and risk factors are very different,
the security and privacy challenges are different...in short, just
about everything is different.

You shouldn't have a
great deal of trouble being accepted for a US ecommerce Merchant
account providing (a) you have decent personal and business credit, and
(b) your product or service is fairly 'mainstream'. As with any
Merchant account, the
2. Web Hosting:
There are literally thousands of firms out there who can design and/or
host your web site. Unless you are doing it yourself, you'll probably
want to select someone near your home or business to maintain the
all-important hands-on t

**
3. Obtaining a digital certificate
A digital certificate, also known as a SSL Server Certificate, enables
SSL (Secure Socket Layer encryption) on the web server. SSL protects
communications so you can take credit card orders securely and ensure
that hackers cannot eavesdrop on you. Any eCommerce processor will
require you to have SSL before you can use their services. For a
minimal fee, one can normally use the certificate owned by the web
hosting company or Gateway providor you are using. If you are a larger
company, you might want to get your own SSL certificate through
VERISIGN or a similar wellknown provider.

4. Contracting with a provider of online transactions, AKA a "Gateway" provider
Finding a good gateway provider package is perhaps the most important
aspect in creating an eCommerce website. Everything in the entire
package revolves around, and must be compatible with, the Gateway. The
Gateway is literally the heart of the ecommerce system; if it fails,
everything dies with it. A good example of a gateway provider is Authorize.net.

5. Shopping Cart Softwar
Shopping cart software is an operating system that can be used to allow
people to purchase your items by selecting them from your menu for
purchase, keeping track of your accounts, and tying together all of the
aspects of your eCommerce site into one cohesive whole. It can be very
simple, as in allowing for the purchase of just one item; or very
complicated, allowing for the purchase of several items, each by size,
color, or similar criteria.
GoDaddy and Volusion are good examples of shopping cart providers.

BG
www.juno.com
www.MerchantServices-help.com

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Bridge 364 posts since
Jun 3, 2008

7. Re: How do I accept credit cards for on-line payments? Jun 8, 2008 3:31 PM

in response to: amspcs

Thanks amspcs,

Great overview.

I have a pretty good idea of what I have and need now. Thanks for taking the time to outline it for me.

Greg

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WITrading 6 posts since
May 17, 2008

8. Re: How do I accept credit cards for on-line payments? Jun 11, 2008 9:00 PM

This is something that we are currently including in our business. Making payments with credit cards is a great way to increase revenue. There are different ways to do this but depending on the amount of business you currently have and are expecting to have, you should start with a basic plan which you can do through Bank of America's Merchant Services.

Hope this helped, you can visit us at www.lwilliamswit.biz

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amspcs 514 posts since
Oct 18, 2007

9. Re: How do I accept credit cards for on-line payments? Jun 12, 2008 10:39 AM

in response to: WITrading

The previous post from WITTrading, while generally faactual, requires a little amplification.

Re+: "you should start with a basic (+internet credit card processing+) plan which you can do through Bank of America's Merchant Services+".

True, B of A offers internet processing programs. It should additionally be stated, however, that there are many well-priced basic starter plans available from many sources, not just B of A, or any other depository bank for that matter.. The notion that the source for the best and/or cheapest merchant procesesing is your local bank is simply not accurate.

Here is something discussed previously in this forum that is well worth repeating:

Credit card processing institutions (known as Acquirerers) are very limited in number and do not generally include neighborhood banks. Banks are banks, processors are processors....two completely different unrelated industries. Acquirerers market their services primarily via ISO's (Independent Sales Organizations). Neighborhood banks purporting to offer credit card processing services in general function only as referrers to the end ISO/Acquirerer source; their interest in the sales chain consists of earning referral fees and/or ongoing commissions for their referrals; they have nothing to do with the actual processing activities. So when a merchant contracts with an Acquirerer/ISO via his neighborhood bank referrer instead of going directly to the very same ISO/Acquirer himself, all the merchant has accomplished is raising his cost of his processing services by adding an additional unnecessary middleman to the cost equation. Somebody has to pay for the extra referral expenses, and that somebody is the merchant.

AMSPCS
www.juno.com
www.MerchantServices-help.com

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How do I accept credit cards for on-line payments?

Jun 7, 2008 4:23 PM

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