Total Apps

The online shopping industry is booming. Every year, online sales continue to rise at exponential speeds. It’s no doubt that it’s here for the long haul. Customers love the ease at which they can browse products, select items, and use online credit card processing to complete a purchase – all within just a matter of minutes. What’s even better: they can do it all from the comfort of their own homes.

Have you started offering online credit card processing, enabling sales of your products and services on the web? If not, you could be missing out on sales every minute you put it off.

What is Online Credit Card Processing?

Online credit card processing is exactly what it sounds like: credit card processing that’s done online. Using a shopping card and payment gateway on your website, you can allow customers to select a product, input their information, enter credit card details and, just a few clicks later, their transaction is completed and processed. They’ll receive their purchase via email or snail mail, depending on their chosen delivery method.

How Online Credit Card Processing Works

Online credit card processing utilizes a two-part system that consists of a shopping cart and a payment gateway. The shopping cart is what the customer uses to select products, view transaction totals, and input their payment information. This is where they will enter their credit card details when it’s time to purchase.

The payment gateway is owned by the online card processor you choose and is the tool that actually manages the processing of your customers’ purchases. It facilitates the transfer of the customer’s card information from your shopping cart to the card’s bank or financial institution, ensuring it’s done safely, securely, and quickly.

Here’s how online credit card processing works, at its simplest:

• The customer browses your products, chooses the ones they’d like to purchase, and adds them to the shopping cart.
• They input their personal information, shipping preferences, and credit card details.
• The website’s browser encrypts the card numbers and personal information, then transfers it to your web server.
• The server then transfers the payment through the payment gateway for processing.
• The payment gateway forwards the card information to the appropriate bank, seeking authorization to approve the transaction.
• Once approved (or disproved) by the bank, the payment gateway then sends a response back to the website, either allowing the customer’s purchase to be completed, or declining it.

Types of Online Credit Card Processing Services

When it comes to online credit card processing, there are a variety of options. You’re not just limited to accepting credit and debit cards; a number of other online payment methods can be utilized in tandem with your card processing services, offering your customers even more convenient payment options.

Some different types of payments you may also be able to accept online include:

• Electronic checks – Similar to traditional personal checks, these allow customers to issue money directly from their bank account. Once the bank has verified there are ample funds for the transaction, the purchase may be processed.
• Digital wallets and PayPal – Digital wallets like PayPal are also easy ways to accept payments online. These enable customers to save credit, debit, and gift cards digitally for use in online purchases. Additionally, customers can also link up bank accounts or deposit funds in directly, so they can be used toward transactions.
• Bill me later – This service is for customers who wish to shop online, but either don’t have a credit card with which to pay or are uncomfortable with online credit card processing. It allows customers to complete an online purchase without actually paying right away. Instead, they are sent a paper bill; once this bill is paid off, they can receive their purchase.

Security of Online Credit Card Processing

Businesses and customers alike often have concerns regarding the safety of online credit card processing. Fortunately, most processing providers do too. Online card processing companies often employ a number of fraud prevention and identity theft security measures designed to help keep customers’ personal and financial information safe from harm.

Some common security measures are:

• Secure Socket Layers – Often called SSL layers, these are website layers that encrypt important information, so that it can be transferred to other sites, servers, or payment gateways safely. It prevents hackers and unauthorized users from accessing the information while it’s being transmitted.
• Address verification – This fraud prevention tactic compares the address on the card with the customer’s shipping address. If the two don’t match, it sends up a red flag and halts the transaction from being processed.
• IP blacklisting – Many servers for online processing providers keep a database of blacklisted IP addresses, ones that are known for hacking, scamming, or using fraudulent means to make online purchases. These IP addresses are blocked from striking again.

Online credit card processing providers also often limit the number of times a user can enter a wrong password or other customer information. If they hit this limit, it could indicate they are using someone else’s identity, and they are not permitted to proceed with their transaction.

Online Credit Card Processing Can Improve Your Bottom Line

In more ways than one, online credit card processing can improve your bottom line. It can make your customers more apt to buy, it can open up a new sales channel for your business, and it can enable you to make sales anytime, anywhere – even when your brick-and-mortar doors are closed.

Here are just a few of the ways online payment processing can lead to more profits:

• By increasing your payment methods. Online credit card processing providers usually allow you to accept any number of payment types, not just credit and debit cards. This allows you to reach customers who prefer to pay via an e-check, bank transfer, bill me later, PayPal, and more.
• By adding a sales channel. When you add online card processing, you’re effectively adding a new sales channel. Your brick-and-mortar location is no longer the only venue in which you can sell your products and services. You can now sell them online – any time of day, any day of the week.
• By improving customer satisfaction. No longer to do customers have to leave the house, carry their items up to a cash register, and wait in a long line just to make a purchase. With online credit card processing, they can do it all from the comfort of their home – and with just a few clicks of the mouse. It’s easy, it’s convenient, and it leads to a much happier, more satisfied customer.
• By keeping costs down. All you need to process a card online is a website, a shopping cart, and a payment gateway. There are no expensive terminal fees, no staff costs, and no electricity bills to keep your online sales coming in!

Choosing the Right Online Credit Card Processing Services

Not sure how to choose the right online credit card processing services for your company? There are a few factors you should consider.

First, know what you’re looking for. Do you want to only process credit and debit cards, or do you want to include PayPal, bill me later, and other services? Do you need a shopping cart and help with integration? If so, look only for providers who offer those services. By knowing what you’re look for from the get-go, you can you narrow your field of choices quickly and easily.

Next, look to online credit card processing reviews on the web. Find out what customers and merchants have said about each company you’re considering. Did they get good customer service? Were rates consistent? Did they help with development and integration?

Finally, call Total Apps. We can help you create the perfect online credit card processing solution for your business: one that meets your growing needs, your long-term goals and, of course, your budget.

Helpful Links
Need more information about online credit card processing? Check out these links:

• Authorize.net – A popular online payment gateway
• PayPal
• How to Handle Online Credit Card Processing
• Online Credit Card Processing Reviews