How to Accept Credit Card Payments on a Website

If one is on his way to ecommerce and wants to set up a website selling products or services, then there are some requirements that he needs to fulfill well in advance prior to starting such a project. It may be a one-time purchase or a monthly subscription by the clients, for which the method of payment online is through the plastic currency that is through the credit card.

How to Accept Credit Card Payments on a Website How to Accept Credit Card Payments on a Website

The number of users that prefer the use of online transactions with the payments made through the credit card is increasing. It is already up by three times as compared to the other mediums such as payment by cash, cheques or demand drafts. The number of people using the credit card payment option is sure to increase further in the near future, as it is the most comfortable and quick mode of paying.

Thus, as a businessperson operating on the Internet, one cannot survive if he does not have the facility of accepting payments through the credit cards. This is because the system finds extensive usage at almost every website irrespective of the products or services it caters.

Steps

Each credit card transaction requires a number of formalities that have to be completed, but these formalities can be in place quickly during the course of the transaction. Moreover, the facility of accepting the payments through the credit cards on the website helps in boosting the business and therefore, increases the profits, which is the ultimate goal of every business unit.

Another main advantage of the credit card payments online is that, as a genuine business practice, you can avoid the problems of counterfeit or bounced-cheques. This, method of accepting online payments enhances the professionalism and promotes goodwill for the website and the company. This enhances the credibility of the website as in the present age people are of the belief that paying through the plastic currency is more secure than paying cash or cheques.

Normally, two methods of accepting credit card payments through the website are popular. These are:

Internet Merchant Accounts method: In order to open a merchant account, one initially requires contacting a bank or a company that is established in offering the payment processing services. He needs to provide the necessary details about himself and the business that he is conducting. These details include the basic information such as name, address, email-id and phone numbers. Along with these, he needs to clarify the estimated volume of sales.

Every single merchant account charges fees, which are under sections like transaction fee, gateway fee, start up fee and the statement fee.

Third party credit card processors are the other forms of accepting the online payments through credit cards on the website. This option is for those, who are not comfortable opening their own merchant account. This is a method in which, there is verification of the card account information and the processing continues once verified.

This method is too low on the cost of operations. Normally, one need not pay for the expensive processing charges or the monthly maintenance fees. The amount to be paid is a single time payment, which is applicable during each of the transactions. This amount usually varies in the range of one to three percent of the total amount of expenditure by the client.

Tips

Find out the charge back policy of the card processor company. One must look into their arbitration procedure and the amount of charge back that he would have to bear.

Warnings

One must always be careful about the Internet fraudsters who are constantly in search for minting money opportunities.


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