Three Ways to Accept Credit Cards Online

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By MerchantGuide

Need to Accept Credit Cards Online?

If you need to accept credit cards online, then there are THREE different ways for processing payments online you'll need to consider as you check out online merchant accounts.

In no particular order they are:

  1. Gateway and Shopping Cart Integration
  2. Direct Linking to Your Site
  3. Using your Gateway as a Virtual Terminal

Let's explore each one in a bit more detail, shall we?

Online merchant accounts differ from retail merchant account in one noticeable way.

There is no credit card machine.

For a retail account, the credit card terminal is typically shipped pre-programmed to the business. The terminal becomes the tool (method) for linking your customer's credit card to your bank account.

Well, for an online merchant account things are a bit different.

The function of linking your customer's credit card to your bank account occurs through your payment gateway.

And your gateway can be used three different ways...

1. Payment Gateway Integration

When your gateway is linked to your website through a shopping cart (either a software program or online service) there is where integration plays a very important part.

You need to make sure that all the parts will fit together BEFORE signing up with a merchant account provider.

Why?

Because not every shopping cart works with every gateway.

And too many times people purchase very expensive software to act as the shopping cart, only to find out at the eleventh hour that it just won't work with their gateway and merchant account.

Ouch!

For online security, you'll need to make sure that:

  • your shopping cart is secure
  • that your cart is securely linked to the website (your web developer should handle that for you)
  • and that you have a SSL certificate in place.

2. Direct Integration with Your Website

Another way to link your gateway to your website is through "direct linking."

Basically, your gateway can generate code for "Add to Cart" or "Buy Now" buttons, much the same way as PayPal allows you to generate button codes.

Now, if you decide to link your gateway directly to your website by using code generated from the gateway then integration is not much a huge problem.

As long as you know how to add HTML code to your website's page.

Or you have someone who can do it for you.

Using this method for integrating with your website works well for:

  • membership sites
  • service providers that offer monthly subscription (web hosting, for example)
  • businesses with one or a couple of product offerings for sale

Additionally, you usually do not need a SSL certificate, since the online security is handled directly by the payment gateway you are using.

3. Gateway as Virtual Terminal

When you use your gateway as a virtual terminal, you will log into your account and process payments by entering in your customer's credit card information directly.

Just fill in the blanks to get the process moving.

This method works well for professional practices, such as:

  • attorneys
  • accountants
  • web designers

where customers are not necessarily there in person to hand over a credit card for payment.

To accept credit cards this way, you will be better served if you use some sort of credit card authorization form (to protect you against possible chargebacks) that your customer can fill out and fax to your office.

And like second method, you will not need a SSL certificate for your website.

Since this method of processing payments really doesn't involve a website at all, it is the easiest of the three to get up and running.

So which method is right for you?

Well, that depends on your business.

And how processing payments fits into your overall business model.

Each method has it's strengths and weakness, primarily involving

  • how easy (or difficult) it is to integrate into your website
  • how much time and effort is involved to process a payment, and
  • what you need to do to make sure your transactions will be secure.

Find the Right Merchant Account Provider

Finally, you'll want to make sure you work with a merchant account provider who specializes in online merchant accounts. Many providers focus exclusively on retail, mainly because they are generating the bulk of their income through credit card terminal sales or leases.

The point is, work with a specialist who can walk you through the process to help you get the best payment processing solution for your business

That way, you'll be sure to get the best merchant account.

So what can you do?

Get your free merchant account quotes from qualified providers by clicking the link today.

That way you can make side by side comparisons of the different merchant account providers. Then compare offers for yourself, ask questions and select the one that's right for you.

After all, the choice is yours...

Comments

Richard 6 months ago

I would say the Payment Gateway Integration is probably the most convenient and easy to use option for most Merchants because they can quickly access their account and have all their transactions processed automatically. The biggest challenge facing online merchant's is more to do with security, for example, choosing PCI compliant software and added extras such as 3D secure. I found one good UK blog that dicusses everything about tackle fraud:http://tinyurl.com/7cuhcd5

MerchantGuide profile image

MerchantGuide Hub Author 6 weeks ago

Hey Richard, thanks for the comment.

Actually, PCI compliance and card security is more smoke and mirrors than reality. The processing banks have had breaches, but like to make it a "merchant" issue. That way they can pass along their costs for compliance onto their customers by making it seem like they are all in the same boat.

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    Other Merchant Account Set Up Tips...

    There's more to accepting credit cards -- whether you have multiple locations or you own a "mom and pop" business.

    In fact, believe it or not asking "what's your rate?" over the phone is the LAST thing you should be thinking about, because there are multiple rates, fees and other charges depending on your type of business and how you want to accept credit cards.

    Not to mention that quoted rates over the phone are often misleading, or only apply to your business 20% of the time.

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