Credit Card processing Merchant Account – What you need to know?
Nowadays, the majority of offline businesses are going online. Due to the boom in e-commerce industry, many start-ups have also entered in this field to grab the opportunity. Starting an online e-commerce business is very easy. You need to have the right knowledge about the process.
When you have an ecommerce website, you have to receive credit card payments. To establish an online business and process credit card transaction, you need to understand the following things-
E-commerce means selling on the internet through a website. So many people are now enjoying the benefits of shopping online. An ecommerce website is developed by a third party using website code, database and other applications like payment gateway, shopping cart etc.
As a website owner, you need to have the SSL certificate for data security like banking details of the customer. Your website should be in compliance with PCI.
Importance of merchant account
The merchant account is a type of bank account which is used to hold the card payments. It serves as a financial agreement with a merchant and a credit card processor. With the help of merchant account transaction are initiated in real time. When the customer makes payment online via a credit card that amount gets debited from a customer’s account and after some time gets credit in merchant‘s bank account. For credit card processing and to receive payments online you need a merchant account.
It is a system or a software application which links website page to the payment page to transmit transaction data securely. The payment gateway receives transaction request when customer process credit card transaction online. It connects with the Visa or Master Card to authenticate the payment. If customer bank account has sufficient fund then payment is authorized. The Same Company can provide merchant account and payment gateway. A single platform can be used for both.
The payment processor handles the transaction request. When the payment request is generated than payment gateway gets to connect with the payment processor and then it sends authorization and makes settlement from Visa or Master Card. Though online transaction takes few minutes the whole process works in seconds to initiate the payment.
Virtual shopping cart
It is a kind of software that facilitates the shopping online. When we shop online then we came across the shopping cart while checkout. The shopping cart stores product information and it serve as a gateway to process the order. In general, this software is enabled on the entire e-commerce website.
One needs to know about everything in e-commerce business. To receive credit card payments, it is very important to have a merchant account and payment gateway. All online business stores has to accept all types of payments like the debit card, credit card, wallets, net banking etc securely. With the help of merchant account, all these payments can be processed easily.