If you are thinking of moving your business online, you should also be learning about the process of how business process credit card transactions and how they are paid. There are many companies to choose from that will acts as third part online payment processing firm for you so that you will no longer worry about the process. The specific processes that these payment processing companies use may be different but the basic idea is the same; collect information, check the information and transfer the money.
Securing the billing information
The customer who is ready to pay should click on a button that will direct her to the cart where information can be gathered from him or her securely. This person will be directed to a page confirming the items that he or she wants to purchase and some fields where he or she may enter the payment or billing information. This page may not differ much from the previous page but in most cases, the server of this page is different from the usual pages. This controlled process is made much more secure by directing the buyer to a different server that is managed by the payment processor.
Authorization of the credit card
The information gathered are checked and authorization from the credit card company or the banks is asked. A request for authorization is then sent to the financial institution with the information about the buyer stated. The bank or credit card company can either allow the transaction or deny it if there are problems with the account or if there are some information that are incorrect.
Sending of payment
The details regarding the sale is then confirmed with the buyer where the amount that will be deducted from the credit card is stated. When the purchase is confirmed, the payment processor transfers the amount from the credit from the credit card to the business account of your website.
Alternative payment options are presented to the buyer it the transaction is not authorized by the financial institution. There are many trusted payment processing companies that you can choose from to create a Merchant Account with. Businesses with a well maintained Credit Card POS run more smoothly and more efficiently.