Today a majority of credit card transactions are sent electronically to merchant processing banks for authorization, capture and deposit. Various methods exist for presenting a credit card sale to "the system." In all circumstances either the entire magnetic strip is read by a swipe through a credit card terminal/reader or the credit card information is manually entered into a credit card terminal, a computer or website.
- Credit Card Terminal
A credit card terminal is a stand-alone piece of electronic equipment that allows a merchant to swipe or key-enter a credit card's information as well as additional information required to process a credit card transaction. A credit card terminal is a dedicated piece of equipment that only processes credit cards although it is common for related transactions including gift cards and check verification to also be performed. A credit card terminal typically must be plugged in to a power supply and connected to a telephone line.
- Automated Response Unit (ARU)
An ARU (also known as a voice authorization, capture and deposit) allows the manual keyed entry and subsequent authorization of a credit card over a cellular or land-line telephone. With this method a merchant typically imprints their customer's card with an imprinter to create a customer receipt and merchant copy, then process the transaction instantaneously over the phone.
- Payment Gateway
A payment gateway is an e-commerce service that authorizes payments for e-businesses and online retailers. It is the equivalent of a physical POS (point-of-sale) terminal located in most retail outlets. A merchant account provider is typically a separate company from the payment gateway. Some merchant account providers have their own payment gateways but the majority of companies use 3rd party payment gateways.
The gateway usually has 2 components:
a) the virtual terminal that can allow for a merchant to securely login and key in credit card numbers or
b) have the website's shopping-cart connect to the gateway via an API to allow for real time processing from the merchant's website.
- Level 2 or Level 3 Processing - Purchasing Cards
Visa and Mastercard have created a specialized type of credit card used primarily by government agencies and businesses. Increasingly, corporations and government agencies are relying on this form of payment to compensate their service providers and suppliers. Businesses benefit by receiving their funds quickly and by winning competitive bids and government contracts where purchasing cards are the required form of payment. The downside, however, is the increased costs associated with receiving these payments. These costs will usually be much higher than accepting a standard consumer credit card.
- Merchant Account Marketing
Merchant accounts are marketed to merchants by two basic methods: either directly by the processor or sponsoring bank, or by an authorized agent for the bank and additionally directly registered with both Visa and MasterCard as an ISO/MSP (Independent Selling Organization / Member Service Provider). Marketing details are by card issuers like Visa and MasterCard, and are enforced by various rules and fines.
- Marketing by Banks
A bank that has a merchant processing relationship with Visa and Mastercard, also known as a member bank, can issue merchant accounts directly to merchants. To reduce risk, some banks limit approval to merchants in its geographical area, those with a physical retail storefront, or those that have been in business for 2 years or more.
- Marketing by Independent Sales Organization (ISO)/MSPs
To market merchant accounts, an ISO/MSP must be sponsored by a member bank. This sponsorship requires that the bank verify the financial stability and suitability of the company that will be marketing on its behalf. The ISO/MSP must also pay a fee to be registered with Visa and Mastercard and must comply with regulations in how they may market merchant accounts and the use of copyrights of Visa and Mastercard. One way to verify if an ISO/MSP is in compliance is to check a website or any other marketing material for a disclosure "company is a registered ISO/MSP of bank, town, state. FDIC insured". This disclosure is required by both Visa and Mastercard and will cause a fine of up to $25,000 if it is not clearly visible. In almost all cases, if there is no disclosure, the company is likely to be an uninformed 4th party or worse. In many cases unregistered operators have been responsible for some of the worst horror stories from merchants.
References:
http://en.wikipedia.org/wiki/Merchant_account#Methods_of_processing_credit_cards
For more information on Credit Card Processing Equipment, Terminals, Machines & Software you can visit: http://www.paynetsystems.com/html/equipment_list.htm
Wednesday, April 29, 2009
Tuesday, April 28, 2009
Payment processing via iPhone
A wide range of payment processing solutions are available for merchants via several channels including e-commerce, software developers, and financial institutions. Increased popularity of mobile devices has made payment processing an easy option for merchants. Business owners can use their iPhone to conduct real business.
Merchants can now process credit and debit card transactions through iPhone using its secure networks or iPod Touch over a WiFi or 3G wireless connection. Use of iphone has increased the ease, efficiency and security of transactions for goods and services, anywhere there is cell coverage.
The new iPhone Virtual Terminal is reportedly the only payment processing terminal available for the iPhone and iPod Touch, which eliminates the need for dedicated or fixed processing equipment. Iphone gives independent contractors, small business merchants and entrepreneurial start-ups mobile access to secure payment solutions.
Transactions can be processed at places such as conventions, street fairs, antique shows, and by business owners performing mobile detailing, on-site consultation or construction. The list is endless on who could benefit by offering the convenience of accepting credit cards on the spot and the confidence of getting immediate authorization for a credit card payment.
This gives business owners the benefit of processing transactions anywhere when they are out of the office, all with a single account.
Source: http://www.paynetsystems.com/credit-card-processing/
Monday, April 27, 2009
Types of Credit Card Processing Fees
There are a variety of fees you may encounter when setting up a credit card merchant account.According to www.websitemarketingplan.com, If a potential merchant account/credit card provider does not mention one or more of the following credit card processing fees:
Application Fee: A charge to process your application for a credit card merchant account.
Yearly membership: Additional, annual credit card processing fees may be required to accept credit cards for certain specialized industries such as casino accounts.
Set-Up Fee: A fee or fees charged to process and activate your merchant account and/or gain access to a secure Payment Gateway.
Gateway Access Fees: A fee for using the secure server (such as Authorize.net) to approve and process transactions. Depending upon arrangements with the payment gateway processor, your credit card merchant account may include gateway processing fees as a separate line item or include it as part of a general monthly processing fee.
Monthly Statement Charges: Some institutions charge fees to generate and process a monthly statement.
Discount Rate: A credit card processing fee charged to process each transaction, based on a percentage of the transaction's dollar amount. The rate is based on risk associated with the transaction and will likely be different for each type of credit card transaction you process. An online transaction processing fees rate, for example, is generally higher than in-person retail discount rates because the associated risks are higher.
Address Verification Service (AVS): A separate processing service that cross-checks your customers' credit card number with the mailing address. The small per-transaction credit card processing fee is sometimes included in the discount rate.
Fixed transaction Fees (charged in addition to discount rate): Flat fees you pay for every credit card transaction processed.
Application Fee: A charge to process your application for a credit card merchant account.
Yearly membership: Additional, annual credit card processing fees may be required to accept credit cards for certain specialized industries such as casino accounts.
Set-Up Fee: A fee or fees charged to process and activate your merchant account and/or gain access to a secure Payment Gateway.
Gateway Access Fees: A fee for using the secure server (such as Authorize.net) to approve and process transactions. Depending upon arrangements with the payment gateway processor, your credit card merchant account may include gateway processing fees as a separate line item or include it as part of a general monthly processing fee.
Monthly Statement Charges: Some institutions charge fees to generate and process a monthly statement.
Discount Rate: A credit card processing fee charged to process each transaction, based on a percentage of the transaction's dollar amount. The rate is based on risk associated with the transaction and will likely be different for each type of credit card transaction you process. An online transaction processing fees rate, for example, is generally higher than in-person retail discount rates because the associated risks are higher.
Address Verification Service (AVS): A separate processing service that cross-checks your customers' credit card number with the mailing address. The small per-transaction credit card processing fee is sometimes included in the discount rate.
Fixed transaction Fees (charged in addition to discount rate): Flat fees you pay for every credit card transaction processed.
Thursday, April 23, 2009
List of Credit Card Associations
American Express
American Express Company (NYSE: AXP), sometimes known as "AmEx" or "Amex", is a diversified global financial services company that is headquartered in New York City, New York. Founded in 1850, the company also has major offices in Fort Lauderdale, Florida; Salt Lake City, Utah; Greensboro, North Carolina; Phoenix, Arizona; Sydney, New South Wales, Australia; Markham, Ontario, Canada; London and Brighton, United Kingdom. The company is best known for its credit card, charge card, and traveler's cheque businesses.
AmericanExpress.com
Diners Club
Diners Club International, originally founded as Diners Club, is a charge card company formed in 1949 by Frank X, McNamara, Ralph Schneider, and Matty Simmons. When it first emerged, it became the first independent credit card company in the world.
Dinersclub.com
Discover Card
The Discover Card is a major credit card, issued primarily in the United States. It was originally introduced by Sears in 1985, and was part of Dean Witter, and then Morgan Stanley, until 2007, when Discover Financial Services became an independent company. Novus, a major processing center, used to be partners with the company as well. The Novus logo has since been retired and now the Discover Network logo has replaced it.
Discovercard.com
Japan Credit Bureau
Founded in 1961, JCB established dominance over the Japanese credit card market when it purchased Osaka Credit Bureau in 1968 and its cards are now issued in 20 different countries. Fifty-nine million JCB cardmembers worldwide use their cards to purchase over US$62.7 billion of goods and services annually in 190 countries worldwide. JCB also operates a network of membership lounges targeting Japanese, Chinese, and Korean travelers in Europe, Asia, and North America.
Jcb-Global.com/english
MasterCard
MasterCard Worldwide (NYSE: MA) is a multinational corporation based in Purchase, New York, United States. Throughout the world, its principal business is to process payments between the banks of merchants and the banks of purchasers that use its "MasterCard" brand debit and credit cards to make purchases. MasterCard Worldwide has been a publicly traded company since 2006. Prior to its initial public offering, MasterCard Worldwide was a membership organization owned by the 25,000+ financial institutions that issue its card.
MasterCard.com
Visa
Visa Inc. (NYSE: V), commonly referred to as VISA (Visa International Service Association), is a multinational corporation based in San Francisco, California, USA. The company operates the world's largest retail electronic payment network, managing payments among financial institutions, merchants, consumers, businesses and government entities. Before Visa Inc's IPO in early 2008, it was operated as a cooperative of some 21,000 financial institutions that issued and marketed Visa products including credit and debit cards.
Visa.com
References:
http://en.wikipedia.org/wiki/Credit_cards
For more information on Accept Credit Cards and Credit Card Processing, you can visit: http://www.paynetsystems.com
American Express Company (NYSE: AXP), sometimes known as "AmEx" or "Amex", is a diversified global financial services company that is headquartered in New York City, New York. Founded in 1850, the company also has major offices in Fort Lauderdale, Florida; Salt Lake City, Utah; Greensboro, North Carolina; Phoenix, Arizona; Sydney, New South Wales, Australia; Markham, Ontario, Canada; London and Brighton, United Kingdom. The company is best known for its credit card, charge card, and traveler's cheque businesses.
AmericanExpress.com
Diners Club
Diners Club International, originally founded as Diners Club, is a charge card company formed in 1949 by Frank X, McNamara, Ralph Schneider, and Matty Simmons. When it first emerged, it became the first independent credit card company in the world.
Dinersclub.com
Discover Card
The Discover Card is a major credit card, issued primarily in the United States. It was originally introduced by Sears in 1985, and was part of Dean Witter, and then Morgan Stanley, until 2007, when Discover Financial Services became an independent company. Novus, a major processing center, used to be partners with the company as well. The Novus logo has since been retired and now the Discover Network logo has replaced it.
Discovercard.com
Japan Credit Bureau
Founded in 1961, JCB established dominance over the Japanese credit card market when it purchased Osaka Credit Bureau in 1968 and its cards are now issued in 20 different countries. Fifty-nine million JCB cardmembers worldwide use their cards to purchase over US$62.7 billion of goods and services annually in 190 countries worldwide. JCB also operates a network of membership lounges targeting Japanese, Chinese, and Korean travelers in Europe, Asia, and North America.
Jcb-Global.com/english
MasterCard
MasterCard Worldwide (NYSE: MA) is a multinational corporation based in Purchase, New York, United States. Throughout the world, its principal business is to process payments between the banks of merchants and the banks of purchasers that use its "MasterCard" brand debit and credit cards to make purchases. MasterCard Worldwide has been a publicly traded company since 2006. Prior to its initial public offering, MasterCard Worldwide was a membership organization owned by the 25,000+ financial institutions that issue its card.
MasterCard.com
Visa
Visa Inc. (NYSE: V), commonly referred to as VISA (Visa International Service Association), is a multinational corporation based in San Francisco, California, USA. The company operates the world's largest retail electronic payment network, managing payments among financial institutions, merchants, consumers, businesses and government entities. Before Visa Inc's IPO in early 2008, it was operated as a cooperative of some 21,000 financial institutions that issued and marketed Visa products including credit and debit cards.
Visa.com
References:
http://en.wikipedia.org/wiki/Credit_cards
For more information on Accept Credit Cards and Credit Card Processing, you can visit: http://www.paynetsystems.com
Credit Card Processing - Step by Step Processing
Internet credit card processing is done by following a series of steps to transact the credit card online. The process begins when the consumer decides to buy something; this is when the merchant’s commerce application prompts the consumer for credit card merchant service information. This includes general information with a shipping address usually. This follows with the consumer entering payment information either into a form secured by a protocol or into an application, such as Internet Explorer or Netscape Navigator. With the secured form, the payment information is protected by Secure Sockets Layer as it is sent to the merchant.
Using the payment software incorporated in the Web server, the merchant sends the encrypted transaction to the acquiring processor for authorization. The authorization is a request to hold funds for purchase. The acquiring processor either authorizes a certain amount of money or declines the transaction. An authorization reduces the available credit limit but does not actually put a charge on the customer’s bill or move money to the merchant. If the transaction is authorized, a "capture" is the next step. The capture takes the information from the successful authorization and charges the authorized amount of money to the consumer’s credit card merchant service. In line with bank card association rules, the merchant is not allowed to capture transactions until the ordered goods can be shipped, so there may be a time lag between the authorization and the capture .If the consumer cancels the order before it is captured, a "void" is generated; if the consumer returns goods after the transaction has been captured, a "credit" is generated.
The final step is to "settle" the transaction between the merchant and the acquiring processor. Captures and credits usually accumulate into a "batch" and are settled as a group. When a batch is submitted, the merchant’s payment-enabled Web server connects with the acquiring processor to finalize the transactions and transfer cash to the merchant bank account.
For More information visit Credit Card Processing and Merchant Account Services visit: http://www.paynetsystems.com
Source URL:
http://www.paynetsystems.com/credit-card-processing/?s=authorization&paged=2
Using the payment software incorporated in the Web server, the merchant sends the encrypted transaction to the acquiring processor for authorization. The authorization is a request to hold funds for purchase. The acquiring processor either authorizes a certain amount of money or declines the transaction. An authorization reduces the available credit limit but does not actually put a charge on the customer’s bill or move money to the merchant. If the transaction is authorized, a "capture" is the next step. The capture takes the information from the successful authorization and charges the authorized amount of money to the consumer’s credit card merchant service. In line with bank card association rules, the merchant is not allowed to capture transactions until the ordered goods can be shipped, so there may be a time lag between the authorization and the capture .If the consumer cancels the order before it is captured, a "void" is generated; if the consumer returns goods after the transaction has been captured, a "credit" is generated.
The final step is to "settle" the transaction between the merchant and the acquiring processor. Captures and credits usually accumulate into a "batch" and are settled as a group. When a batch is submitted, the merchant’s payment-enabled Web server connects with the acquiring processor to finalize the transactions and transfer cash to the merchant bank account.
For More information visit Credit Card Processing and Merchant Account Services visit: http://www.paynetsystems.com
Source URL:
http://www.paynetsystems.com/credit-card-processing/?s=authorization&paged=2
Wednesday, April 22, 2009
Virtual Terminals: Capture Sales Beyond Internet
A virtual terminal is a web-based application that allows businesses to process credit cards on line. And for this you all you require is an Internet connection and the login information to the virtual terminal. This is ideal for businesses that wish to accept credit cards at more than one location.
Virtual Terminal allows you to manually process credit card transactions from any computer with an Internet connection in the world. You simply login to a secure website with a login and password and you are able to charge cards, perform authorizations, and even process credits. In addition, you have complete on line reporting of all the transactions and orders.
Virtual terminals are very useful for the businesses suffering from mild sales volume. You are relieved from the worry of buying a costly point-of- sale equipment to boost your sales. Additionally, a virtual terminal is accessible from anywhere. You can take a variety of orders and enter them in, no matter where you are. You do not have to try an access what you need through a physical terminal. Moreover, these terminals are more affordable and cost less than payment gateways. It supports a wide variety of powerful features, including comprehensive transaction management and reporting features, to help you manage your business better.
In the case of some virtual terminals, it is possible to have them set up so that your site is processing the payment without redirecting to another site. It makes the process of refunding of money to a customer’s credit card. It also lets you capture the previously authorized transaction, check the status of transactions, and run a variety of reports.
Paynet Systems’ Virtual Terminal (Online Terminal) is archetypal for any business where credit card payments are accepted over the phone, mail or via email. Our Virtual Terminal lets you rapidly capture and authorize credit card transactions in real time, using any computer connected to the Internet, anywhere in the world. And there’s no software to install!
Our low monthly fee includes 24-hour customer service and any future upgrades. Additionally, the Virtual Terminal can be saved on any number of computer “desk tops”. This means unlike software packages that charge for upgrades, customer service, and licensing fees, the Virtual Terminal is all inclusive allowing you to effectively manage your cost associates with accepting credit cards.
Our online terminal can be fully customized to meet any business requirement. We’ve also created its standard version for a variety of business needs.
For More information on Credit Card Processing and Merchant Account Services please visit http://www.paynetsystems.com
Source:
Credit Card Processing
http://www.paynetsystems.com/credit-card-processing
Virtual Terminal allows you to manually process credit card transactions from any computer with an Internet connection in the world. You simply login to a secure website with a login and password and you are able to charge cards, perform authorizations, and even process credits. In addition, you have complete on line reporting of all the transactions and orders.
Virtual terminals are very useful for the businesses suffering from mild sales volume. You are relieved from the worry of buying a costly point-of- sale equipment to boost your sales. Additionally, a virtual terminal is accessible from anywhere. You can take a variety of orders and enter them in, no matter where you are. You do not have to try an access what you need through a physical terminal. Moreover, these terminals are more affordable and cost less than payment gateways. It supports a wide variety of powerful features, including comprehensive transaction management and reporting features, to help you manage your business better.
In the case of some virtual terminals, it is possible to have them set up so that your site is processing the payment without redirecting to another site. It makes the process of refunding of money to a customer’s credit card. It also lets you capture the previously authorized transaction, check the status of transactions, and run a variety of reports.
Paynet Systems’ Virtual Terminal (Online Terminal) is archetypal for any business where credit card payments are accepted over the phone, mail or via email. Our Virtual Terminal lets you rapidly capture and authorize credit card transactions in real time, using any computer connected to the Internet, anywhere in the world. And there’s no software to install!
Our low monthly fee includes 24-hour customer service and any future upgrades. Additionally, the Virtual Terminal can be saved on any number of computer “desk tops”. This means unlike software packages that charge for upgrades, customer service, and licensing fees, the Virtual Terminal is all inclusive allowing you to effectively manage your cost associates with accepting credit cards.
Our online terminal can be fully customized to meet any business requirement. We’ve also created its standard version for a variety of business needs.
For More information on Credit Card Processing and Merchant Account Services please visit http://www.paynetsystems.com
Source:
Credit Card Processing
http://www.paynetsystems.com/credit-card-processing
Tuesday, April 21, 2009
What is a Merchant Account?
To stay ahead in the competitive business world, you need to leverage the benefits of latest technologies. The success of an e-commerce business relies on the ability to accept credit cards. Today, merchant accounts have become widely popular among all types of businesses through out the world.
Merchant account is a bank account which provides an opportunity for businesses to accept credit cards and debit cards as a form of payment. Though a merchant account is offered through ordinary banks, it does not work like your savings bank account. It is a contract between the merchant and the bank providing the account, including set of rules about selling and payment details of products or services.
There are two types of Merchant Accounts:
Over the Counter (OTC) Merchant Account
This is the same what a typical retail merchant has. In this account, the fees for transactions are less. To make a transaction here, the credit cards and debit cards are swiped through the machine and a transaction slip is produced..
Money-Order/Telephone-Order (MOTO) Merchant Account
This account is used by business owners who work in a non face to face business environment. This type of merchant accounts charge higher fees as the card processing involves two steps rather than just one.
Money Order/Telephone Order merchant account is mainly used in an internet based business. The customer enters all his credit card information into a form on a website. Then, the data is then sent out for verification and finally the money gets subtracted out of the cardholder's limit. Sometimes, the card will not be charged at this stage. The amount is just placed in a holding account, and as soon as the product ships out the card is charged for the purchase amount.
It is always noticed that a consumer will spend more when they are able to shop using their credit cards instead of cash payment. Customers can really benefit from merchant account as it gives them the opportunity to use their credit cards and debit cards to shop online or in any retail store and deduct the money from their checking accounts without having to pay interest or any other fees.
Setting up a merchant account is very simple and affordable too. With the emerging new technologies, online payments through merchant accounts have evolved as the most convenient payment mode for customers.
Related Links:
Accept Credit Cards
Merchant account is a bank account which provides an opportunity for businesses to accept credit cards and debit cards as a form of payment. Though a merchant account is offered through ordinary banks, it does not work like your savings bank account. It is a contract between the merchant and the bank providing the account, including set of rules about selling and payment details of products or services.
There are two types of Merchant Accounts:
Over the Counter (OTC) Merchant Account
This is the same what a typical retail merchant has. In this account, the fees for transactions are less. To make a transaction here, the credit cards and debit cards are swiped through the machine and a transaction slip is produced..
Money-Order/Telephone-Order (MOTO) Merchant Account
This account is used by business owners who work in a non face to face business environment. This type of merchant accounts charge higher fees as the card processing involves two steps rather than just one.
Money Order/Telephone Order merchant account is mainly used in an internet based business. The customer enters all his credit card information into a form on a website. Then, the data is then sent out for verification and finally the money gets subtracted out of the cardholder's limit. Sometimes, the card will not be charged at this stage. The amount is just placed in a holding account, and as soon as the product ships out the card is charged for the purchase amount.
It is always noticed that a consumer will spend more when they are able to shop using their credit cards instead of cash payment. Customers can really benefit from merchant account as it gives them the opportunity to use their credit cards and debit cards to shop online or in any retail store and deduct the money from their checking accounts without having to pay interest or any other fees.
Setting up a merchant account is very simple and affordable too. With the emerging new technologies, online payments through merchant accounts have evolved as the most convenient payment mode for customers.
Related Links:
Accept Credit Cards
Monday, April 20, 2009
Is a Virtual Terminal Useful ?
A virtual terminal is used for processing credit card transactions from any computer with an Internet connection and a Web browser. Virtual Terminal is best suited for businesses of all sizes because it reduces the complexity and expense normally associated with authorizing and processing credit card transactions.
A virtual terminal works as follows - You just need to login to a secure website with a login id and password. Then you can start performing authorizations and even begin processing credits. Along with this, you will have a complete online reporting of all your transactions and orders.
By using a virtual terminal you can:
- Enter credit card transactions manually for mail or phone order sales.
- Refund money to a customer's credit card.
- Automatically bill customers for recurring charges.
- check the transaction status and run a wide range of reports
- Capture previously authorized transaction.
A Virtual Terminal is nothing but an online version of the credit card swipe machines used in stores.
Some of the added benefits of virtual terminal are:
- Increases sales
- Saves money
- It's easy.
- It’s affordable.
- It lets you expand your business
- It’s convenient!
A virtual terminal is very popular among all merchants and is an ultimate solution for merchants who manually enter credit card transactions for mail or phone order sales.
Article Source: http://www.indexed-articles.com
A virtual terminal works as follows - You just need to login to a secure website with a login id and password. Then you can start performing authorizations and even begin processing credits. Along with this, you will have a complete online reporting of all your transactions and orders.
By using a virtual terminal you can:
- Enter credit card transactions manually for mail or phone order sales.
- Refund money to a customer's credit card.
- Automatically bill customers for recurring charges.
- check the transaction status and run a wide range of reports
- Capture previously authorized transaction.
A Virtual Terminal is nothing but an online version of the credit card swipe machines used in stores.
Some of the added benefits of virtual terminal are:
- Increases sales
- Saves money
- It's easy.
- It’s affordable.
- It lets you expand your business
- It’s convenient!
A virtual terminal is very popular among all merchants and is an ultimate solution for merchants who manually enter credit card transactions for mail or phone order sales.
Article Source: http://www.indexed-articles.com
Thursday, April 16, 2009
E CHECKS
Merchants have always been apprehensive about accepting checks due to the risks and hassles associated with check acceptance. Check Conversion is one process that comes to the aid of merchants as well as customers by offering a faster, safer and cost-effective mode of check payments. More and more shoppers are accepting check conversion as a quick and easy way to pay for goods and services.
Check conversion transforms paper checks into electronic transactions also known as e-checks that are securely processed in real-time. Funds from authorized payments are deposited automatically into merchants' accounts, usually within two business days.
The conversion process involves the following steps:
- A customer presents a paper check at the point of sale.
- The merchant uses a magnetic ink character recognition (MICR) check reader to scan the check and capture bank account information. (Some point-of-sale terminals also offer imaging capabilities, which capture address information for added security.)
- The terminal electronically sends the account data and dollar amount of the sale to the check service provider for verification.
- The check service provider approves or declines the transaction. If it is approved, the customer signs a sales receipt, which authorizes the merchant to debit the customer's account.
- The check is franked that is, it is marked or stamped as processed and voided; then it is returned to the customer, along with a copy of the sales receipt.
- In as little as two business days, an automated clearing house (ACH) deposit posts the amount of the sale to the merchant's direct deposit account.
Merchants benefit in a number of ways. Firstly, all converted checks are verified, usually at no extra charge. Merchants are guaranteed their funds from approved transactions, because returned checks are the responsibility of their check service providers. Secondly, electronic batch closing eliminates errors and reduces time spent in preparing and reconciling deposits. Thirdly, it results in improved cash flow due to faster closing and settlement.
Merchants van either connect MICR check readers to their existing equipment or upgrade their payment equipment by using terminals with integrated check readers that offer increased processing power and automatic check franking and reduces the excessive cabling at the point of sale. These also include reporting features that facilitate bookkeeping.
To process e-check transactions, store owners must also have merchant accounts with payment service providers that support check conversion. Most check verification services rely on databases of bad check writers to determine whether or not to authorize transactions. So it's important for merchants to go with experienced companies. Ideally, fraudulent check activity should be captured as it occurs.
E-check acceptance enables businesses to maximize sales and customer service while minimizing their risk and costs by incorporating check readers into point-of-sale processing solutions. Finally it hits your bottom line by increasing business and improving customer loyalty.
Article Source: http://www.paynetsystems.com/credit-card-processing/
Check conversion transforms paper checks into electronic transactions also known as e-checks that are securely processed in real-time. Funds from authorized payments are deposited automatically into merchants' accounts, usually within two business days.
The conversion process involves the following steps:
- A customer presents a paper check at the point of sale.
- The merchant uses a magnetic ink character recognition (MICR) check reader to scan the check and capture bank account information. (Some point-of-sale terminals also offer imaging capabilities, which capture address information for added security.)
- The terminal electronically sends the account data and dollar amount of the sale to the check service provider for verification.
- The check service provider approves or declines the transaction. If it is approved, the customer signs a sales receipt, which authorizes the merchant to debit the customer's account.
- The check is franked that is, it is marked or stamped as processed and voided; then it is returned to the customer, along with a copy of the sales receipt.
- In as little as two business days, an automated clearing house (ACH) deposit posts the amount of the sale to the merchant's direct deposit account.
Merchants benefit in a number of ways. Firstly, all converted checks are verified, usually at no extra charge. Merchants are guaranteed their funds from approved transactions, because returned checks are the responsibility of their check service providers. Secondly, electronic batch closing eliminates errors and reduces time spent in preparing and reconciling deposits. Thirdly, it results in improved cash flow due to faster closing and settlement.
Merchants van either connect MICR check readers to their existing equipment or upgrade their payment equipment by using terminals with integrated check readers that offer increased processing power and automatic check franking and reduces the excessive cabling at the point of sale. These also include reporting features that facilitate bookkeeping.
To process e-check transactions, store owners must also have merchant accounts with payment service providers that support check conversion. Most check verification services rely on databases of bad check writers to determine whether or not to authorize transactions. So it's important for merchants to go with experienced companies. Ideally, fraudulent check activity should be captured as it occurs.
E-check acceptance enables businesses to maximize sales and customer service while minimizing their risk and costs by incorporating check readers into point-of-sale processing solutions. Finally it hits your bottom line by increasing business and improving customer loyalty.
Article Source: http://www.paynetsystems.com/credit-card-processing/
Wednesday, April 15, 2009
How home office businesses can process credit cards?
Gone are the days of morning long drives to your office and 4-hour snack-free meetings. People are reclaiming their home lives by being at home more often and perhaps because of it–they’re more productive and contented employees. The number of people working from home has increased in the recent years, and the credit goes to the technology’s ability to connect workers coast to coast and country to country. And credit card acceptance, here, plays an important role in the expansion of your business.
Being able to accept credit cards for home-based businesses makes your business more attractive and simple to customers who wants to pay through their credit cards. This ability may also result in increased sales because customers are better able to make impulse purchases, since they can pay for them instantly. In addition to this, you are free from the harrowing thoughts of getting bounced checks and are not worried about the payments. You’ll know at the moment when you process the payment if your customer has a balance that can cover the cost of the transaction. Moreover, the ability to accept credit cards adds in your goodwill and credibility and give the appearance of being more established than those businesses that accept only cash and check.
Some home based business owners are startled by the process of accepting credit cards and are apprehensive about the associated fees. But today, accepting credit cards is isn’t a herculean task. The growing popularity of e-commerce and the power of the Internet have created a variety of new options for home-based business owners and helped them in understanding the complexities of this ability.
Most home based businesses have unique requirements. Paynet Systems’ sales professionals understand all these requirements and challenges faced by small business owners. They are trained to assess your specific needs, articulate the programs available, and recommend the solution best suited for your business. Paynet Systems’ provide you with a number of home office processing options, that makes accepting credit cards, debit cards, gift/loyalty/stored value cards and cheques easier than ever.
VPOS(Virtual-Point-Of-Sale) Solution, PCCharge Software, Tranz 330 Terminal, Telephone Credit Card Processing are some of the equipments which are fully customized to meet any business requirements.
For more information on Credit Card Processing and Merchant Account Services visit: http://www.paynetsystems.com
Being able to accept credit cards for home-based businesses makes your business more attractive and simple to customers who wants to pay through their credit cards. This ability may also result in increased sales because customers are better able to make impulse purchases, since they can pay for them instantly. In addition to this, you are free from the harrowing thoughts of getting bounced checks and are not worried about the payments. You’ll know at the moment when you process the payment if your customer has a balance that can cover the cost of the transaction. Moreover, the ability to accept credit cards adds in your goodwill and credibility and give the appearance of being more established than those businesses that accept only cash and check.
Some home based business owners are startled by the process of accepting credit cards and are apprehensive about the associated fees. But today, accepting credit cards is isn’t a herculean task. The growing popularity of e-commerce and the power of the Internet have created a variety of new options for home-based business owners and helped them in understanding the complexities of this ability.
Most home based businesses have unique requirements. Paynet Systems’ sales professionals understand all these requirements and challenges faced by small business owners. They are trained to assess your specific needs, articulate the programs available, and recommend the solution best suited for your business. Paynet Systems’ provide you with a number of home office processing options, that makes accepting credit cards, debit cards, gift/loyalty/stored value cards and cheques easier than ever.
VPOS(Virtual-Point-Of-Sale) Solution, PCCharge Software, Tranz 330 Terminal, Telephone Credit Card Processing are some of the equipments which are fully customized to meet any business requirements.
For more information on Credit Card Processing and Merchant Account Services visit: http://www.paynetsystems.com
Subscribe to:
Posts (Atom)