Credit Card Processing for Websites

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What is a Credit Card Processing Service?

Credit cards are still the most popular payment method in the United States, despite the rise of other payment methods like Google Wallet and Apple Pay. If you run a business, whether online or in a physical location, you almost certainly accept credit cards. (Who doesn’t these days?) If you accept credit card payments from customers, you must use a credit card processing service to process the payment. Unfortunately, as the sector has grown, so has the number of unscrupulous tactics, hidden fees, and other restrictions. These heinous tactics frequently target small enterprises, startups, and e-commerce websites. Eddie Tech Solutions can help you with that. We can assist you in selecting the best credit card processing service for your company so that you can accept payments easily and save money.

As your company begins to use a credit card processing service, you’ll need to consider the initial expenses, fees, and equipment that your company will require. Eddie Tech Solutions can assist you in selecting the most appropriate credit card processing provider for your company. A service that is appropriate for a coffee shop that swipes credit cards hundreds of times per day may not be appropriate for a larger-ticket business that only handles a few major transactions per month, such as a car dealership or a piano store.

Equipment

If your company has a physical location, you’ll need point-of-sale terminals, tablet and other mobile credit card readers, and swipe and dip card readers (or a combination of these!) You might also consider a virtual terminal if you run an e-commerce business.

What to Know Before Choosing a Payment Provider: Payment Gateways 101

To make an informed decision when picking a payment provider, you must first learn everything there is to know about payment gateways. When it comes to completing a credit card transaction, there are three parties involved: you (the business owner), your consumer, and the payment gateway, which is the technology that connects the two of you. To take credit card payments, you must work with a merchant bank, which will receive payments on your behalf and deposit them into your merchant account. Your customer will require a credit or debit card from a bank that issues them. Between you and the credit card processing network is the payment gateway, which is the software that connects your store to the network. A payment processor is also required, as it is responsible for all of the heavy work in between: moving the transaction through the processing network, issuing you a billing statement, and coordinating with your bank.

How Payment Transactions are Processed

So, how are payment transactions carried out? You should understand how money goes between your customer and your organization as a business owner. In this section, we’ll answer all of your credit card processing questions.

When a Credit Card Payment Is Processed, What Does It Mean?

Payment processing is divided into two stages: authorization, which involves approving the sale, and settlement, which involves depositing the funds into your account. The following are the steps involved in processing a credit card payment:

1. Your customer uses their credit or debit card to make a purchase on your website.
2. A payment gateway receives their credit card details. Before transmitting the data to a payment processor, the gateway encrypts it and keeps it safe.
3. The payment processor sends a request to the customer’s issuing bank, requesting funds to cover the cost of the goods.
4. The charge will either be approved or denied by the issuing bank.
5. If the charge is approved, the payment processor will notify you that the transaction has been approved and instruct your merchant bank to credit your account with the purchase amount.