Components for online credit card processing

Payment Gateway. The payment gateway provides you the ability to accept customer billing information (credit card number, credit card type, expiration date, and payment amount) and the necessary validation steps that must be followed before the credit card is actually billed.

Internet Merchant Account. An Internet merchant account is an account with a financial institution or bank, which enables you to accept payments online from your clients. The payment gateway actually transmits the billing information to the internet merchant account provider.

Web Site - Regardless of which merchant provider and gateway service you choose, your web site will need to integrate with your service providers.

Online payments service cost

There are more merchant account providers than there are people looking for internet merchant accounts so ask questions and be picky! Typically, an internet merchant account will have several types of costs:

  1. Up Front Application Fees
  2. On Going Fixed Fee
  3. Discount Rate
  4. Fixed Transaction Fee
  5. Termination Fees
  6. Miscellaneous Fees
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Internet consumers continue to make credit cards their primary payment choice for online purchases. While alternative payment methods are growing in popularity, in order to be truly competitive, online merchants must be able to accept credit card and debit card payments.

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