The Merchant Processing Guru Tip#10: E-Commerce – How does it all work? Processing credit cards online is very simple really. First of all you build a site with a shopping cart, then, when it is nearing completion you contact me for a merchant account. You must have privacy policies as well as return and cancellation policies on your site before even considering applying. This is something that is very important to any self-respecting processor and a requirement of Visa & MasterCard.
The processor will provide a web portal for the processing as well as the processing itself, this is called the “secure gateway”. The gateway is where your customers will go for the final phase of their checkout, to fill out their credit card info and complete their purchase. This portion is the most critical part of your web site and is encrypted so your customer’s information is safe. This gateway/portal is connected on the end of your web site’s shopping cart using codes provided by the processors tech team and your web designer will be able to plug those codes into your web site’s shopping cart to “marry” them up seamlessly.
The cost to set up the gateway is anywhere between, nothing & $250.00. Personally, I like nothing! Monthly maintenance fees for the gateway range between $15.00 & $25.00 for the most part. Again, you really have to be very careful with how high the rates are. Your basic e-commerce rate should be less than 2.20% but I see most up around 2.49% on average not to mention the downgrades (non-qualified rates).
Even though it may seem a big deal to switch your merchant account once your web site is up and running, if you are losing a huge amount of money due to the fact that you didn’t really know what you were getting when you first set up the account, does it make sense not to reign in those costs? If you have a good web person to make the switch over once everything is ready, then it is very simple and easy. Don’t wait, get a comparison today and make sure that you are not passing your profits on to the wrong people any longer! Contact me at: [email protected]