Introduction To Internet Transaction

Electronic or e-commerce transaction means payment made through credit card for any purchase of products bought over the internet. A person familiar with this process would also be having knowledge of Internet Merchant Account.

Any company doing business over internet must have an Internet Merchant Account and these days many reputed companies are offering software required for operation and maintenance of such Internet Merchant accounts.

For the purpose of maintaining an Internet Merchant Account, Companies doing online business, must open a checking account with any bank, anywhere in the United States because some local banks do not offer this facility.  These days, market is flooded with many such companies who are offering their services for opening such accounts with the banks and are charging nominal fees for the same.

Internet Merchant Account is useful not only for companies but also for individuals also who are engaged in web-based businesses. Due to popularity of online business, banks have now gone one step ahead by offering entire package i.e. right from the opening of internet merchant account to receiving online payments and then crediting the same to company’s official account.

 There are three layers that exist between a customer and an organization. These three layers are known as Payment Gateway, Internet Merchant Account and website, respectively.  The job of Payment Gateway is to screen the credit card, its validity, the product ordered, the billing details such as price of the product, quantity and any discount offered etc. which is subsequently transferred to the Merchant Bank Account along with the payment received from credit card through electronic format.  For smooth electronic transaction, the website engaged in web-based business should be integrated with the Payment Gateway as well as the Merchant Bank Account.

Transaction Fees:  In addition to the discount rate charged on each transaction. All such transactions come with a fixed nominal fee to the tune of $0.20 to $0.30/transaction.

Gateway Fees: The Payment Gateway which is must to have for online process may also carry monthly charges to the tune of $15 to $30 per month.

 The Internet Merchant Accounts too comes at a price. Normally, there are three different price ranges for upfront application fee, ongoing fixed rate, discount rate, fixed transaction fee, termination fee and miscellaneous fee which depends on the quantum of the business an organization or the website can get.  For a low volume generating business the prescribed fee might be less. Whereas, there will be a scope for scaling up the business and changing the range of the account.

 One must go through all the offers being given by different banks before choosing a particular bank, as the banks are also known to bend, as per requirement of their customer.

Best way to get acquainted with the entire process of Internet Merchant Accounts is go through various sites on internet wherein step by step guidance is provided. Even the banks offering such services, have now started advertising on internet for the convenience of individuals as well as organizations engaged in e-commerce.

Setup a credit card processing merchant accounts to accept credit cards today!