Internet Merchant Account Services
The popularity of online shopping began setting milestones after the first secured eCommerce transaction took place in 1994. 15 years later, the eCommerce industry surpassed another milestone when online sales surpassed general merchandise sales. This trend has set the tone that businesses need an internet merchant account to offer online credit card processing as a way to remain competitive.
Small to medium businesses are less likely to see the need for online merchant processing services. Many of these size businesses focus on their retail storefronts or local proximity to customers to grow their businesses. As consumer spending habits have driven e Commerce sales, industries that once seemed insulated from the internet have now been affected. As new retailers and service providers have taken what was once a local industry and revamped it to become available online, local merchants feel the need to adapt.
Working an internet payment processor that offers businesses the tools necessary for smooth operations is essential for success. Whether merchants require the use of a virtual terminal or only need a payment gateway, Allied Payments can help. Our online merchant account services provide businesses with the reliability and security to run smooth and thrive over the internet. As businesses expand, our payment processing services can quickly scale accordingly, preventing any delays or limitations in growth.
How an Online Merchant Account Works
In a nearly identical manner as a retail payment card transaction, online payments follow much of the same process. A card that is accepted through a merchant's website or entered into a virtual terminal will be authorized using many of the same steps. Authorization requests usually follow the steps below when originating online:
- Shopping Cart
- Payment Gateway
- Payment Processor / Merchant Acquirer
- Card Association
- Card Issuer
Secure online program that is part of the merchant website. It allows customers to store items and send card account information to the payment gateway.
Secure online application that receives customer payment card account information from the shopping cart and sends the account file to the payment processor.
Many times the same organization. The payment processor receives payment authorizations and other merchant transactions. The merchant acquirer manages the transfer of funds from the customer's card issuer.
The financial network that allows the merchant acquiring bank to communicate securely with the customer's payment card organization.
The financial institution that manages the customer account by approving or declining merchant authorization requests.
The process of authorizing an internet payment can take only a couple of seconds from start to finish. Once the cardholder information is transferred from the customer's web browser through the merchant shopping cart, it is entered into the payment gateway. At this point, the card information is received by the payment processor and securely sent to the cardholder's bank.
Merchants can also use the payment gateway as a virtual terminal, allowing for manual payment authorizations. With a virtual terminal, MOTO transactions can be entered through a computer or a card reader can be used to swipe customer payment cards.
The Card Issuer will perform fraud and financial checks to verify the validity of the authorization. A response will be sent back through the Card Association's network to the authorization terminal location. This will inform the merchant if the transaction has been approved or declined.
At the close of business, a finalized request will be sent from the merchant to the customer's card issuing bank for the total required. The card issuer will release the funds to the merchant acquiring bank who will settle the funds to the merchant's bank account.
Starting Online Credit Card Processing Services
Most payment processors and merchant acquirers will require similar documents for their internet merchant accounts. Some of the most common documents required by underwriters to complete their due diligence process include:
- Voided Check
- Supporting Documents
Acquiring Banks and Payment Processors will require prospective merchants to completely fill out an application
Part of the KYC process performed by underwriters to verify the applicants. Some underwriters might require more information in addition to a driver's license or passport.
The Acquiring Bank or Payment Processor's accounting team will want a voided check from the business checking account to verify the settlement account for payments.
Depending on the type of business, the size or it's history; underwriters might require additional documentation including prior processing statements, bank statements or tax returns.
Merchants applying for a high-risk merchant account will usually require additional documentation for underwriting.
Choosing an Online Payment Processing Company
Finding the best internet merchant account provider can save headaches, time, and money in the future. Partnering with an internet payment processor that offers flexibility and functionality for e commerce businesses will help businesses grow without limitations. Our internet merchant services include:
- Online Merchant Account Services
- Payment Gateway
- Virtual Terminal
Allowing businesses the ability to accept Visa, MasterCard, American Express and Discover card payments online or through their website. A necessity for any ecommerce retailer or growing merchant.
Using a fully secure, PCI Compliant gateway will allow customers to safely send payments. Quick and easy to install, businesses will be able to accept payments online without any security concerns.
Businesses that use an onsite shopping cart program might also want the ability to process instore or MOTO transactions. Merchants
Accept Credit Card Online Today!
Merchants in need of payment processing services for their online businesses can find answers to their questions through the Allied Payments blog. Our team of payment processing professionals will be happy to help any merchant with questions or concerns about their business. Contact our helpful staff for more information or to get started accepting credit cards online today.