Search

Business People Club

Search All Topics !

How credit card processors work?

0 like 0 dislike
67 views
Posted by Titank
I wonder if someone could explain how credit card processors work.

Avast

Your comment

Your name to display (optional):
Privacy: Your email address will only be used for sending these notifications.
Anti-spam verification:
To avoid this verification in future, please log in or register.

1 Comment

0 like 0 dislike
commented by Octopuppy
As per 2005 statistics released, on line trade grew more by more than 22% over previous year. To accept credit cards for online trade, you need a merchant account. Getting a merchant account is not easy for all. It does involve a lot of money. To solve this issue, another fast emerging choice is use of third-party factoring services, also known as credit card processors. These processors process third party orders through their own merchant accounts. A good processor provides a secure environment for sale, ensure that supplier fulfills the obligations of trade and ensure payment for the sale to the trader.

The growth of criminal methods on the net to steal information and rob off wealth is growing at alarming rate. To help these issues, these processors provide very valuable service to newbie merchants who can not afford own merchant account and are quite instrumental in fraud prevention as well as to protect the consumer interest. A good credit card processor instills a strong sense of satisfaction among consumers to protect their interests and thus at a nominal cost boosts the revenue of on-line trader.

A good processor has to be very stringent as they are answerable to their own merchant account provider. Too many dissatisfied customers or traders can make them go out of business. I came across http://www.InternetMerchants.info, which very elaborately describes about various credit card processors. It would be a good idea to check from here.

One of such reputed and well established credit card processor is 2CheckOut (2CO), which is online distribution center for over 300,000 products and services. It provides a customizable transaction interface, multi-level customer service interaction, security features using SSL encryption network. One can get started immediately with no hassles of term contracts, additional equipment and can deal with any international suppliers, except for few prohibited products.

<b>What does it cost?</b>

Charges wise, it may not be cheapest one, but in terms of customers rating and appreciation, it definitely stands out. Initial set up charges include one time setup fees of $49. Besides, a commission of 5.5% per transaction and additional charges of $0.45 are levied. These transaction charges can go up on some classes of products. Charges for additional services are even higher. 2CheckOut supports 28 currencies for payment. For payments in local currency, if it is one of the supported currencies, wire option can be exercised at a cost of $5 per transfer. You can also choose to receive funds in US dollars at fees of $20 per transfer. These charges are definitely steep for small payments, but, 2CheckOut does give option to set a release level of payments and payments would be held till it reaches that level. Additionally, there are charges for stop payment of check and for charge backs.

However, being a processor with one of the lowest fraud rate, such steep rates also gel with market.

<b>Payment to Suppliers</b>

Generally all payments are made on 1st and 16th of the month, when all transactions that occur within 48 hours of this period will be processed, and payment remitted. However suppliers with sales volumes of over $1,000 a week qualify for weekly transfers.

<b>Types of Products</b>

A supplier is not allowed to sell certain types of goods as adult content, firearms, ammunition, tobacco products and multi-level marketing etc.

<b>Protecting Consumer Interest</b>

Protection of consumer interest is basically in own interest of a credit card processor to be able to stay in business. As the terms of agreement with 2CO, a supplier agrees to readdress all the customers complaints addressed to him directly or through 2CO, to the satisfaction of customer, proficiently and harmoniously.

To protect interests of sellers, it reserves the right to impose limits on purchase of products by specific buyers for any reason, in its sole discretion, as it may deem fit.

Payments on an account are made after 2CO's verification processes it also holds money from suppliers account to protect buyer's interest. Generally a 5% of the gross sales are kept as reserve for at least 90 days would be held and in some cases the Reserve is retained at a higher rate for period exceeding 90 days.

It has a provision for refund and charge back too. Either 2CO or supplier may ask for reversal of transaction leading to refund and return the funds to a customer's account. Credit card issuing bank may dispute the validity of transaction through the given credit card either on its own volition or on instruction of its clients and initiate reversal of funds transferred. This is called charge back. In such cases, where supplier feels victimized, he may opt to initiate a dispute and seek assistance of 2CO. 2CO would assist by way of providing any documentation that supplier may need and would charge a fee of $14 for each such dispute that supplier decides to contest.

2CO service has been rated as wonderful by most users. The only suggestions for improvement would be more in depth sales reports and the ability to have custom form fields on. It has reputation of being a company that enables businesses to receive funds from businesses and consumers internationally with zero fraud and at a much lower cost than traditional wire payments.

In fact if you are a victim of such credit card processor, you must immediately take steps, which have been very lucidly at http://www.InternetMerchants.info/complainant-guide.html. Do follow them; I am sure these would come handy.

Related posts

0 like 0 dislike
1 Comment 43 views
How to increase my credit card limit?

I want to increase my credit card limit. Its been same for years. How can i do that?

Posted by Dingopher
0 like 0 dislike
1 Comment 58 views
How to create good credit ?

How to create good credit ?

Posted by Camella
0 like 0 dislike
1 Comment 62 views
How to Rebuild Your Credit after Bankruptcy?

How to Rebuild Your Credit after Bankruptcy?

Posted by FatKomodoDragon
0 like 0 dislike
1 Comment 48 views
How to improve my credit score?

My credit score sucks. how can i improve my credit score?

Posted by Butcherry
0 like 0 dislike
1 Comment 72 views
should i accept credit card payments on my site?

I have a ecommerce website. Should i accept credit cards payments? Any help would be appriciated?

Posted by AfternoonFay
0 like 0 dislike
1 Comment 102 views
What are the advantages of switching credit cards?

What are the advantages of switching credit cards?

Posted by LoyalChief
0 like 0 dislike
1 Comment 117 views
What are the Advantages of Low Interest Credit Cards?

What are the Advantages of Low Interest Credit Cards?

Posted by MysteryWasp
0 like 0 dislike
1 Comment 130 views
What are the advantages of low credit interest credit cards?

Why should i get low interest credit cards?

Posted by MammothMoth
0 like 0 dislike
1 Comment 74 views
How to Choose a Credit Card Processing Company?

How to Choose a Credit Card Processing Company?

Posted by ForceSoldier
0 like 0 dislike
1 Comment 71 views
How to Increase Your Credit Card Limit?

How to Increase Your Credit Card Limit?

Posted by Amigod
0 like 0 dislike
1 Comment 114 views
How to buy an airline credit card?

How to buy an airline credit card?

Posted by Sumogre
0 like 0 dislike
1 Comment 95 views
How To Get Approved For A Student Credit Card?

How To Get Approved For A Student Credit Card?

Posted by FoolishJaguar
0 like 0 dislike
1 Comment 54 views
How To Accept Credit Card In Your Small Business?

How To Accept Credit Card In Your Small Business?

Posted by Duskunk
0 like 0 dislike
0 comments 185 views
Create Your Own Shopping Mall and Work from Home

There's no disputing that the Internet has enabled hundreds of thousands of people to launch their own home based business. And, ... rewarding. The secret lies in partnering with the right company.

Posted by HistoryYak
0 like 0 dislike
0 comments 59 views
How To Start an Internet Business – The First Step

The vast majority of web sites are destined to fail before they are even built. Why? Because people building sites almost always put ... little reason to build a site that has no chance of success.

Posted by GreedySmile
0 like 0 dislike
0 comments 69 views
Start Internet Business – Learn How Easy It Is

If you want to start an Internet business, the best place to start is of course the Internet. You can find everything you need to plan your ... ? It's not that hard there are well known ways to do it.

Posted by HairySeahorse
0 like 0 dislike
0 comments 157 views
How To Fully Automate Your Website So You Don’t Waste Time Working

So you don't have a way of managing all of the customer responses coming through your inbox? I can relate, please let me share ... when a customer assesses you and your site faster than you realize.

Posted by Knighthawk
0 like 0 dislike
0 comments 89 views
How to Make Money in an Online Magazine

Many people are now trying to involve themselves in an online business. There are a variety of online business opportunities, you go ... business will assure you of a great success in the future.

Posted by Emufasa
0 like 0 dislike
0 comments 91 views
How can you increase your profits?

It is one of the most important question that you should ask yourself, and know. There is only two ways to increase your profits, and ... in, online or offline. So go on and make some profits.

Posted by GroundHurricane
0 like 0 dislike
0 comments 79 views
The Value of Drop Shipping: How Much Are You Saving?

by Stuart Lisonbee Now let's compare the length of time we would spend on an auction if we were to use Doba. Because we are allowed to ... is of value to me. It's also less stress, and less hassle.

Posted by GamerAlpaca
0 like 0 dislike
0 comments 125 views
Top Internet Marketing Blunders and How to Avoid Them

Internet marketing can be a tricky business if you do not know what you are doing. That is one reason that so many marketing beginners ... and have a link to your e-mail address on the home page.

Posted by Dingopher
0 like 0 dislike
0 comments 141 views
How to write a Killer Ad?

Copywriting is an essential element in the marketing of any product. More so, in a shrunken global village. Whether it's online ... consider these factors and you'll copy up with a Killer Ad.

Posted by MagicalCyborg
0 like 0 dislike
0 comments 69 views
How to guide on marketing on the internet

If you are new to the net and interested in making money ethically then this article will educate you in the various ... author may be contacted at anhharrisandsons@primusonline.com.au Happy netting.

Posted by AmazingKitty
0 like 0 dislike
1 Comment 100 views
0 like 0 dislike
1 Comment 68 views
0 like 0 dislike
1 Comment 59 views
How To Increase Your Auction’s Visibility On Ebay?

How To Increase Your Auction’s Visibility On Ebay?

Posted by UncleRhino
0 like 0 dislike
1 Comment 87 views
How to become awesome seller?

How to become awesome seller?

Posted by Prepatriarch
0 like 0 dislike
1 Comment 146 views
How should you host your business ecommerce website?

How should I host my business ecommerce website?

Posted by Explorer
0 like 0 dislike
1 Comment 140 views
How To Make Money Selling Ebooks?

How To Make Money Selling Ebooks?

Posted by HairyFoal
0 like 0 dislike
1 Comment 79 views
How to promote my ecommerce site?

I want to promote my ecommerce site?

Posted by MammothMoth
0 like 0 dislike
1 Comment 109 views
how to get started with ebay?

I want to start selling on ebay?

Posted by FrighteningTwinkles
0 like 0 dislike
1 Comment 82 views
How Become a Millionare Selling Custom T Shirts?

How Become a Millionare Selling Custom T Shirts?

Posted by HairySeahorse
0 like 0 dislike
1 Comment 87 views
How to Create a Money Magnet E-commerce Web Site?

how to create an eCommerce website that could attract more customers?

Posted by KeyboardPie
0 like 0 dislike
1 Comment 139 views
0 like 0 dislike
1 Comment 100 views
How To Make Money Using RSS Feeds?

can you really make money using rss feed?

Posted by HarshThunder
0 like 0 dislike
1 Comment 158 views
0 like 0 dislike
1 Comment 92 views
How to plan to become successful business?

Planning for business? How to do it?

Posted by nicejone
0 like 0 dislike
1 Comment 140 views
How to sell software on ebay?

How to sell software on ebay?

Posted by SleepyFledgling
0 like 0 dislike
1 Comment 148 views
How to sell my internet business?

How to sell my internet business?

Posted by SwiftHeroine
0 like 0 dislike
1 Comment 97 views
How to be successful selling wholesale?

How to be successful selling wholesale?

Posted by GreedySmile
0 like 0 dislike
1 Comment 101 views
How to Compare Merchant Accounts?

How to Compare Merchant Accounts?

Posted by HarmlessRose
0 like 0 dislike
1 Comment 82 views
How To Make Money Selling Ebooks?

How To Make Money Selling Ebooks?

Posted by GiftedWrecker
0 like 0 dislike
1 Comment 91 views
0 like 0 dislike
1 Comment 75 views
How Can I Profit from Resell Rights products?

How Can I Profit from Resell Rights products?

Posted by Tabooccaneer
0 like 0 dislike
1 Comment 72 views
How to make money on craigslist?

How to make money on craigslist?

Posted by MammothMoth

online business.png

Connect with us:
...