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Online Credit Card Processing - Standard Routine |
By:
Jack Chevalier |
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Online credit card
processing is the processes that will check your
customers credit card number, expiry date etc., withdraw money
from his/her account and deposit it into your account.
It can be achieved manually, but this could get extremely
tedious and also take too much of your time. The best option is
to automate it. This can be done using different types of
software, buying or leasing other people's processing services
or by writing a program/script yourself. The process works as:
1) The consumers complete their orders via the merchant's web
store. This should be done on a secure web page so that the
consumer's personal information including banking information
(credit card or check) is encrypted so that it can't be
intercepted and read by third parties while being transferred
over the internet. Secure pages should always be used while
handling credit card processing online.
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. It then determines what company
manages the customer's credit card and transmits a request for
the card to be charged.
4) The customer's credit card company validates the card and the
account. If everything checks out correctly and the credit card
is clear for purchases the credit card company sends an
acknowledgement back to the card processor that the amount
requested can be transferred. If the credit card company denies
the charge it sends a code back to the credit card processor
indicating what the problem was.
5) The credit card processor now tells the shopping cart program
at the web host whether or not the transaction was successful
(the shopping cart then can tell the customer whether or not the
order was complete and send the order on to the merchant for
delivery of the product or service). The credit card processor
initiates a funds transfer (settlement request) to the merchant
account company for deposit into the merchant's bank account
that it has on record.
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.
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Article Source: http://www.friendsofvista.org/articles/article26284.html |
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