E-Commerce FAQ
How can I accept credit card orders on my web
site?
These basic elements are the
foundation of accepting online orders via credit card:
- A credit card merchant account with a bank
- A method by which to collect orders and
credit card information (order forms or shopping cart
system)
- Secure Socket Layer (SSL) Encryption - to
provide your customers a secure method to transmit their
credit card and ordering information to you
What is a credit card merchant account?
A credit card merchant account allows
your business to accept credit cards for payment of goods and
services. A customer provides his or her credit card
number when you make a sale. You submit the credit card
number, expiration date and amount of the sale to your merchant
account provider (typically a bank). Within 3-5 days the
funds are electronically deposited into your business bank
account.
How do I obtain a credit card merchant account?
Most banks and financial institutions
offer merchant account services. Check with your current
bank and ask for an application. There are also companies
that specialize in providing merchant account services in
addition to the lease and sale of credit card terminals,
processing software, etc. These companies are listed in
abundance in the phone book or via a search on the web for
"merchant account providers". One such provider
is Card Services International at http://www.cardservice.com.
Fees can vary greatly amongst merchant account providers, so you
will want to do some comparison shopping before choosing a
merchant account provider.
What is 'Real-time' credit card processing?
Real-time credit card processing
allows your web order pages to immediately submit your
customer's credit card information via the Internet to your
merchant account bank for authorization. Real-time
authorization is useful if you anticipate a large volume of
online transactions or wish to provide your customer with
immediate access to your product or service. Example:
Selling a piece of software that a customer can download
immediately after their credit card has been authorized in 'Real
time'. Real-time credit card processing functionality can
involve additional costs beyond standard processing which
include: additional service fees from your merchant account
provider bank, additional software requirements for real-time
processing, customized ordering pages created for your web site
and/or web server payment gateway software configuration and
setup. Some careful research and planning is recommended
before launching a Real-time payment system on your web site to
determine the total costs and your expected return on
investment.
How do I collect orders on my web site?
The most common methods are using a
simple online order form, or a shopping cart system with an
order form. Once your customer completes your online order
form the order can be delivered to you via email, saved to a
text file or saved to a database file on your web site for you
to retrieve. Upon receipt of your customer's order you can
submit their credit card and payment information to your
merchant account provider and deliver your product or service.
When should I use a simple stand alone online
order form?
- If you have a small number of items
available to purchase (less than one or two dozen unique
products or services).
- If are looking for an inexpensive solution
or have a limited Internet budget
- If you are a novice or immediate web
designer and want to start with a simple, easy to build
order system
When should I use a shopping cart system on my
web site?
- If you have a larger number of items
available for sale (more than a dozen)
- If you wish to automatically total a
customer's order including shipping, tax
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