Payment Gateways

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Topics: Merchant Services

Payment Gateway merchant account A few very important things you need to know about a payment gateway and about a virtual terminal when it comes to domestic & global credit card processing. First of all, what are they and why does my business need it? Let’s answer those questions for you in simplified terms.

Payment processing is the electronic means of exchanging account information from the store level to your payment gateway originating through a credit card purchase which initiates a secure encrypted transaction request electronically sent to the gateway allowing the transaction to clear. Your payment gateway then immediately corresponds with your merchant account, which corresponds with your financial institution in real time. This process typically takes less than a minute.

A payment gateway allows your business to make payments transactions to a payment processing system electronically, which is through an automatic clearing house called an ACH. An ACH is a secure payment

transfer system that connects all US financial institutions. The other payment processing system is through the credit card interchange, which in essence is the clearing process of credit card transactions. They also settle and manage these transactions real time.

If you are an online merchant your website should be set-up with an online catalog and a shopping cart. Consumers shop from the comfort of their home and at any hour of the night and day with a click of a button. If your store doors are not open after 5:00 p.m…. not to worry, your online shopping is open 24/7. An additional way to triple your business profits especially when it comes to global credit card processing.

What is a shopping cart? A shopping cart allows consumers to purchase items from your business website via online and is connected to that payment gateway which is connected to your internet merchant account which is connected directly to your financial institution. Again, getting that money electronically in your account in seconds.

What is a virtual terminal? It is a virtual point of sale terminal, which is another secure method of processing payments using a computer. This method allows you to key in the consumers information, which is bundled with a payment gateway that enables you to process a credit card transactions over the internet. This process is necessary for a business that processes a majority of orders via phone, mail order or fax.

It is imperative for your business to be able to process payments in an array of different ways to accommodate each and every consumer. Plain and simple! In exchange for nonminal processing fees you get rewarded by the added profits. In this market you must be set-up correctly in order to make the most money from your business. If you are unable to process a payment via check the customer walks away, if you are unable to process a credit card payment that customer walks away, if you are unable to process a debit card, guess what? Your customer will walk out or go to another website that can accommodate that purchase. Each purchase whether is be for $5.00 or $500.00 adds up to money in your pocket. Get the picture? This is why you are in business to make money… bottom line, literally!

So be sure your  business is set-up efficiently in advance and you will be running smooth prior to your Grand Opening.

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