Credit Cards – SNDA Online

Selecting a Mobile Payment Partner

Staff — Sat, 01 Jul 2017 15:39:01 +0000

Tips to select a mobile credit card processing partner.

Using a phone to accept credit cards online has become one of the most important revolutions in financial technology in the past two to three decades. Processing payments from a mobile device has made it easier to service the customer whenever he or she is ready to buy, and allows for faster checkout speed too. Still, investing in mobile processing isn’t a simple matter. This guide will help you determine which payment processors offer the best benefits to you and your business.

Selecting a Partner

You’ll quickly find that you have many options for online credit processing, from banks to technology startups. Your best choice will be the partner who provides a comprehensive solution to the unique challenges your business faces, along with affordable rates and efficient service. Also keep in mind that banks rely on middlemen, so they may not be the most affordable option, even if they feel like the most reliable one.

Functionality is another concern. With new plug-in technology, merchant credit card processing is now possible on your iPhone, Android or tablet.

Security is Key

Any payment processor is going to need heavy-duty security if your customers are to feel comfortable using it. You’ll need encryption that will obfuscate the information from the payer and the payee, and a secure method to transfer that data. More retail businesses are using encrypted card readers to prevent unauthorized access to this precious data.

Without that security, your customer information is constantly at risk.

The Definition of a Payment Gateway

Staff — Tue, 30 May 2017 18:51:23 +0000

Learn what a payment gateway does, and how merchant accounts utilize one.

When a business wants to accept money for goods that it sells, it needs to transfer those funds through a payment gateway. This gateway is like a figurative path the money needs to travel down to get from the customer’s account to the business owner’s. Payment gateways are only used online, and their primary goal is to keep a customer’s data secure as money is moved throughout cyberspace.

If you want to accept credit cards online, read on for the definition of a payment gateway and how it helps your business interests.

A payment gateway is a type of ecommerce service provider that is used by online retailers and brick and mortar stores. Its purpose is to authorize credit card payments, and it helps facilitate the transfer to the payment portal. When you utilize a merchant account for your business, you’re actually running the card through a payment processor, which pushes the data through a gateway to a portal, where the money is finally accepted.

The gateway is important because it is the means to transfer money, and it affects everything from speed of transfer to security of both the buyer and seller. Several layers of SSL encryption are utilized by the gateway in an attempt to create something like a vacuum. Most gateways encrypt the information of the buyer and seller, essentially creating a single session. The transaction takes place within that session, and once the session ends once all the data has left the gateway.

All of this usually takes about 2-3 seconds, but the actual movement of money from one account to another can vary depending on the type of merchant account you have. Talk with the team who supports your merchant account and ask them the typical transfer rates, which may be affected by the customer’s bank or credit card company as well.

Essential Software and Tools for Online Companies

Staff — Fri, 18 Oct 2013 18:16:29 +0000

Are you planning to start a new business on the internet? If so, your e-commerce business needs more than a website. Designing a fancy website without the right online software and tools is the equivalent of designing a grocery store without a cash register, shopping carts, or products on the shelves. Customers might visit the store because of the sign on the door, but they can’t purchase anything!

Running an e-commerce business requires specific software and tools. With the appropriate tools in your toolbox, you can display your products, provide an online shopping cart, and accept credit cards and other payment methods on the internet. There is even software you will need if you want to provide your customers with quality customer service, such as email support or virtual face-to-face support. But how do you know which tools and software to use? Here are the top three software and tools you need to run an e-commerce website.

Get a web shopping cart. An online shopping cart provides a way for your customers to checkout at your website. It shows your customers the list of items they have placed in their online “shopping cart” in order to purchase at a later time. Once they are ready to buy the products, the shopping cart software shows customers what they have ordered, the price of each item, and the final cost with tax and shipping. Using the online shopping cart, customers can checkout and pay for your products and/or services.

How do you purchase a shopping cart? There are many different types of shopping carts on the market. Talk to you web developer about which one is right for you. Or, to make things easier on yourself, you can use the shopping cart software provided by your merchant account provider. When you setup an account for processing credit cards online, you might even get the shopping cart software for free.

Buy payment processing software. In addition to a shopping cart, you will need to have online payment processing software in order to accept credit card payments over the internet. Advanced software should be able to accept most credit cards and debit cards on the web in real time. Make sure that the software is safe and secure for your customers.

Before purchasing payment processing software, make sure to find out if your merchant account provider offers this type of software. Many companies offer it for free if you open a merchant account.

Purchase an online credit card terminal. Similar to a traditional credit card terminal you would find in a brick-and-mortar shop, an online credit card terminal provides fast and easy manual processing of credit card orders.

Chargeback Basics You Should Know

Staff — Fri, 08 Mar 2013 19:16:37 +0000

Article submitted by: Solidtrustpay

Chargeback is a serious concern many businesses are faced with at present and especially with the rapid growth of online sales. Chargebacks can cost a business a great deal both moneywise and time wise. So what does one need to know about chargebacks and what steps can be taken to prevent it?

A chargeback is when a customer contests a charge in his credit card statement. This can be done for various reasons such as:

Non authorization of payment – can happen where the credit card has been stolen and there has been a fraudulent transaction.

Goods not delivered – happens when a customer has made a legitimate purchase using his credit card but later disputes the payment on the ground that the goods ordered were not delivered. This could be done with fraudulent intentions.

Technical issues – the customer has been charged twice for the same transaction or the wrong amount has been charged.

Credit not been processed – the customer has returned the goods to the seller but the payment has not been refunded.

What happens when a chargeback is claimed?

When a customer raises the issue about a payment with the credit card issuing bank, it will be referred to the merchant bank that in turn will refer it to the merchant. The responsibility lies with the merchant to prove that a legitimate transaction did take place and the goods were duly delivered to the customer. In the even the merchant is unable to provide such proof he will have to accept the chargeback claim and refund the money to the customer.

What effect does a chargeback have on the business?

The merchant has to spend a considerable amount of time trying to prove the validity of the transaction and this involves locating sales receipts and other evidence. This time would otherwise have been constructively spent on more important matters.

If he cannot prove otherwise and has to accept the chargeback, he is compelled to refund the money the customer has paid. This is not the only loss the merchant will suffer, he also has to bear the cost of the goods that were already delivered along with the delivery charges and the merchant bank will charge fees for each chargeback as well.

It is estimated that for every $1 paid back for chargebacks, it costs the merchant $2.30. This basically sums up the serious effect it has gon the business.

What can be done to prevent chargeback?

When doing online business use an Address Verification System which checks if the credit card billing address and the delivery address matches to reduce the chances of chargeback.

Chargeback can ruin a good business if necessary steps are not taken to curb it from the beginning. Find out what can be done to prevent chargeback and apply it to your daily transactions to safeguard your business.

A Guide to Hidden Merchant Account Fees

Staff — Fri, 08 Feb 2013 23:28:03 +0000

Article Submitted by: Solid Trust Pay

A small business will open a merchant account to accept credit and debit card payments with the intention of increasing sales and thereby increasing profits. But the fees charged for merchant accounts may not be as straight forward as they seem. There are many fees that are hidden from you and you only find out when you receive the monthly statement. Here is guide to some of those hidden payments and how you can avoid any surprise charges.

The quoted rate is not applicable to all cards.

You have been offered a very reasonable rate, but you will be later informed that the rate is only applicable to a certain type of card and all the others will be charged at a higher rate. Before you enter into an agreement make sure you get details of rates for each type of card you intend to use.

PIN debit transactions fees

Some merchant service providers charge a transaction fee for debit card transactions with a PIN, whereas some charge a monthly flat fee for it. If you do not receive a lot of debit card payments you should opt for a per transaction fee. Make sure that the transaction fee quoted is the only fee and that there will not be any other costs such as debit network fees added to the transaction fee.

Annual fees

You may be told by your merchant bank that there will be no annual fees charged from you, but the fees charged by the credit card companies will be passed on to you and it could cost over $60 per month.

Payment gateway fees

If you are going to accept credit card payments online you will be charged a payment gateway fee. This will be charged by the gateway provider. Find out whether there will be any additional monthly charges for the payment gateway.

Minimum monthly fee

Visa and MasterCard will levy a minimum monthly fee from to ensure that they will receive that amount every month irrespective of what your monthly sales volumes are.

Cost of terminal

Most merchant banks will offer you a free POS terminal, which is a very basic one. If you opt for a better model you will be offered to buy it outright or the option to lease it over a period of at least two years. The outright purchase price in most cases will be overpriced even if they offer a special price for you. Shop around for it elsewhere and you can but it for a much lesser price.