| Payment processing on internet is done through credit | | | | grown to a good extent. |
| cards. To process payment you require an online | | | | There is another angle also. You need to put quite a |
| merchant account and provide your visitors | | | | security measures and monitoring to provide safe |
| secure(SSL) line so that the data they provide is kept | | | | transactions for your customers and to check credit |
| safe. | | | | card frauds. This requires increased monetary input. |
| Merchant accounts are special accounts that provide | | | | When you work through TPP, this all is their job and |
| merchants with the ability to accept and process credit | | | | they it very efficiently. |
| card transactions. In other words, a merchant account | | | | There is plethora of TPPs that you can choose from. |
| handles transferring the funds from the shopper's | | | | While some offer free setup, others would ask you for |
| credit card to the merchant's bank account. | | | | a setup fee. Transaction fee also vary a great deal. |
| For a merchant account you have to apply with a | | | | TPPs would take a percentage of every transaction |
| processing bank to have a merchant account | | | | that you do through them. |
| dedicated to your business. After you get it you are | | | | Paypal is a well known and trusted TPP. You don't |
| responsible for it in every way. You would need have | | | | need any set up fee and they charge you only per |
| a payment gateway also which would take the | | | | transaction. Paypal accepts payment from more than |
| information from credit cards of your buyers and | | | | 45 countries. |
| process the transaction and pass information to your | | | | 2Checkout( 2checkout.com) would charge you $49 |
| bank to complete the transaction. A gateway is | | | | fee for set up. After that the only charges are per |
| generally not included with the account. | | | | transaction. |
| Merchant accounts are quite costly. | | | | These are the two processors that i use routinely and |
| An alternative option to accept payment on the net is | | | | have no complaints. |
| to use the services of payment processors that do | | | | Authorize.net, Linkpoint, Plugnpay are some of other |
| not require you to have a merchant account and carry | | | | widely used processors. |
| out the transactions through their own merchant | | | | After you have opened your account, you need to |
| account. They are also known as third party | | | | create a special link which would take your customers |
| processors.More... | | | | to the payment processor site with information on |
| A third-party processor allows businesses and | | | | money to be transacted and information about the |
| individuals to accept credit card payments through its | | | | account (Yours) where it needs to be put in. |
| own merchant account. All you need to do is to apply | | | | Some TPPs would like you to provide info about your |
| for an account with the third party processor which | | | | product and price at their website beforehand and |
| would use its own criteria to decide whether or not | | | | then provide you a link with your id and product id |
| you'll be eligible. You do not deal with the bank at all. | | | | included, which you can place as the order link. |
| Third party processor also provides you the payment | | | | Others like Paypal make you go through a wizard that |
| gateway interface which you would use at your site. | | | | asks you information and price of the products and |
| When you are just beginning, it is good idea to start | | | | creates a button which you can use as the order |
| with a third party processor(TPP). You can move on | | | | button. |
| to merchant account later when your business has | | | | That is all. It is that easy. |