For online businesses accepting credit card payments is a compulsory requirement and not a luxury. The reason for this is, most online customers prefer to pay using credit cards because it is extremely convenient and secure.

Most transactions at any merchant outlets are carried out using credit cards these days. However, other than business transactions, the personal transactions also can be done using credit cards these days. The reason for credit cards being used so widely is the convenience that it allows when it comes to money and time management. It also eliminates the need to carry huge amount of money with you in your pocket.

What are the key essentials regarding processing of credit cards for any merchant?

1)    Internet Merchant Account

The first thing that you need to process credit cards online is the “Internet Merchant Account”. It is a contract between a merchant bank and your business which allows you to collect funds from the credit account of your customer by entering his credit card details.

2)    Credit Card

Your customer should have a credit account and a credit card which he or she can use to pay for the purchases.

3)    Payment Gateway

Lastly, you need a payment gateway which is a software application that sends the credit card details from the merchant’s website to the credit card processor to the issuing bank and returns the status message in the reverse order. It also does the reporting and billing of the transactions.

You need to make sure that your payment system is safe and secure so that your customer’s credit card data is not compromised or your business is not susceptible to fraud.

The safest and easiest method of credit card processing for online merchants is through a 3rd Party Processor. They 3rd Party Company will provide a merchant account and also a payment gateway. There are many 3rd Party Processors operating in the market today, for all kinds of businesses. Other than the merchant account and the payment gateway you will also get a shopping cart software application. This will make the shopping experience more users friendly for your customers because they will be able to buy several products or services at once. Though it looks expensive in the beginning you will find it worth each penny when you start experiencing its benefits in the long term.

Prior to deciding which company you will do business with; you have to approximately determine the quantity and average ticket size of the sales of your company. There are several other processing services which can be availed by you if your business needs them. However, choosing the correct provider will help your business grow. The consequences of choosing the wrong one are extremely bad which may also result in the closing down of your company because the merchant account will eat into your business profits, thereby starving you of the funds to expand your business. In some cases, you will also not be able to get out of it. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.