Creditcard processing
All online storefront solutions enable you to authorize and process credit card transactions in real time. The result of the authorization process is either an approval code or a decline. A credit card purchase may be declined for a variety of reasons. For example:
- The credit cards being used by the customer has been reported stolen.
- The spending limit for the card has been exceeded.
- The credit card has been canceled.
- The card number is invalid.
- An incorrect expiry date has been provided for the card.
With credit card processing, you encourage customers to place their orders using a credit card. A customer selects one or more products from your website, inputs his or her shipping information and purchase. Information about the purchase is sent over a secure, proprietary connection to the cardholders bank. Within a few seconds, the authorization response is sent back to the merchant and the customer will be told onscreen whether the transaction was approved or declined. The benefit of using credit card processing is threefold. First and foremost is the ability for your customer to place their orders immediately, rather than having to print out the order form and either mail, fax, or phone in the order.
Several online stores have lost sales because the customer had to perform the additional steps of printing and faxing in their order. Secondly, the customer is told right away whether the transaction has gone through successfully. If the transaction is declined, the customer has a chance to use a different credit card number or fix the problem immediately without abandoning the purchase attempt.The third advantage of online credit card processing is that it is faster and more efficient for you to process orders in this fashion.
Although it is possible for you to manually authorize and process credit card orders, you would have to chase after customers if problems arose with the credit card information. With online processing, you can let the software do the work for you and catch problems before the orders go through.In recognition of these advantages, most merchants on the internet use real time credit card processing. This brings us to the subject of internet payment gateways.
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