How Online Credit card processing works?
How Online Credit card processing works?
Purchasing product online has become more popular day by day due to several reasons and conveniences associated with it. In case of online purchase, payment is generally made by customers through net banking, debit cards or credit cards. However, use of credit card in online shopping tops the chart. In this article we will discuss about different steps, mechanisms and terms involving in the process of online credit card processing.
All credit card processing is done through transaction process. Some major types of online transaction process include Sale, Preauth, Postauth, Credit and Chargeback. For performing the online credit card processing, the concerned Ecommerce web portal must possess the underlying things. They are
1- Must have a Card Not Present merchant account.
2- Have an account with a payment gateway
3- Vital Tear Sheet to the gateway which can be drawn from the bank.
4- A server which is enabled by SSL
All most all online getaways offer an API for online transaction process. However, in some cases these getaways offer web- based interface for transaction process. There are numbers of online credit card transactions but each online credit card processing follow the same basic steps. They are
1-Consumer is the heart of credit card online processing. As far as online processing is concerned, credit card of the consumer is taken into account in a HTML format. After collecting the customer's credit card details, this HTML code sends all these details to the server for processing. Here, the consumer has to fill up all the required information that are asked the form and after filling it, has to click on the "submit "option
2- After receiving the posted data, the server sends those data to codes that are stored on the server for processing.
3- These processing codes get the data from the web server and then check out the validity of the information entered by the consumer. After checking, the code changes the format of the data which can be understood by the getaway easily. The code sends the data to the gateway and also asks to check out the validity of the card to ensure whether it is fit for the credit card processing or not,
4-If the credit card is valid and has enough money for transaction then the gateway sends a confirmation message to the credit card processing code. For this the gateway charges some merchant amount. In some cases this charge is a pre- transaction one and in others it is charged as a monthly cost.
5- Once the transaction money arrives at the gateway place, then they are gone through the appropriate clearinghouse that fits the transactions. Some major online clearinghouses are Visanet, Nova, Paymentech and Global. Choosing a clearing house for the purpose of processing depends upon factors like the type of credit card and the type of bank from which the credit card is issued. These clearinghouses get money from different types of getaways and also batch the money for all the involved banks. They have also the capability of transferring the transaction from one bank to another. For these services these clearinghouses demand five percent of the total sale.
6- After batching out the received transactions, the clearinghouse transfers the money from the customer's bank account to the merchant's bank account.
7-After receiving the transaction report from a clearinghouse the consumer's bank deduct right amount money from the account and send it to the merchant's account. For this credit card processing, the bank charges some amount. Watch India Vs Netherlands 2011 Cricket World Cup March 9th Online Live Securing Your Online Transactions Stream MLB Watch Kansas City Chiefs vs Chicago Cubs Online Live via PC Online Savings Accounts Popularity Watch Tulane Green Wave vs Southern Miss. Golden Eagles Live Online College Links Things to Look for in Online Universities Online Bachelors Degrees – Is It The Right Path To Take? Online Bachelor Degrees – How They Can Kick start Your Career Online College Program – Is It Possible To Be Successful When Studying Online? Quick Payday Loans Online – Get All Your Needs Financed In A Click Why Buy T-shirts Online? Payday Loans Online: Short Term Loans but Effective for Your Goals Buy College Textbooks Online and Save Hundreds of Dollars