Online Credit Card Payment

Topics: Credit card, Merchant account, Payment systems Pages: 2 (538 words) Published: May 1, 2013
Online Credit Card Payment

By Sunday Onodjacha

Though credit card payment acceptance online is quite a simple process, you need to clearly understand the various options before choosing the one that suits your business objective. This will enable you to avoid having issues with credit card companies. This article clearly explains the various options and how best to choose the one that suits your business interest. How it Works Firstly, credit cards are issued by a credit card company which could be either a bank or a credit union. Mind you, this only takes place when you have an account with a credit provider. When this has been done, cardholders can now use the cards for payment at websites that accept credit card payment. Secondly, for a purchase to be made, the cardholder must agree to make payment to the card issuer. The card holder agrees by giving his or her card details and indicating amount to be paid or by giving his Personal Identification Number (PIN). Securing Merchant Account A merchant account is the account where any credit card payment will be deposited. And if it is going to be an online payment, then you must have an Internet Merchant Account otherwise known as IMA. Apart from banks, there are many other merchant account providers such as PayPal, an independent sales organization and others which you can use in many countries. Importantly, one should realize that getting a merchant account approval directly through a bank is sometimes extremely difficult. This is because many banks are not comfortable providing credit card to online businesses that are not very popular and financially strong. When you have secure a merchant account, your bank acts as the issuer by confirming available money and all transactions and exchanges with the issuing bank of the credit card and the cardholder’s...
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