Things to Know – Definitions
Here are some basic definitions that will help you to understand the terminology associated with online payment processing, merchant services, and accounts…
- Credit Card Processor. A credit card processor is the company that facilitates the ability to accept credit cards both through physical machines or systems set up to accept electronic wireless transactions online. They manage the overall process of authorizing or declining credit card sales and oversee the transition of the money between financial institutions. If you are interested in Ultimate Merchant Providers you need to visit this site www.ultimatemerchantproviders.com.
- They charge a small fee for their services, but facilitate revenue growth in businesses with the merchant services they provide.
- Payment Gateway. Payment gateways are systems or portals used to encrypt sensitive information during a transaction and authorize payments securely over a network server connection through the Internet. These gateways can take various shapes depending on the business needs of those they service. A gateway at a traditional brick and mortar store will look very similar to a Point-of-Sale (POS) system where the customer will swipe his or her card through a base card reader terminal to enable payment processing, where an online merchant will simply have a secured box where the sensitive.
- Ecommerce. Ecommerce is simply the ability to conduct business transactions over the Internet between companies and their consumers, which is often referred to as B2C or Business to Consumer or between businesses (companies and vendors) B2B. E-Commerce, however, is not limited to credit card processing, but also encompasses all business that can be conducted electronically (i.e. generating leads for marketing, trading stocks via the Internet, sharing information over secured private networks within a company, or just about any other transactions that take place electronically).
There are four basic business account types with different features available to merchants of all sizes. They are Internet Merchant Accounts, Mail-Order Merchant Accounts, Retail Merchant Accounts, and Home Business Accounts. Credit card processing can be done in many different ways and the costs can vary significantly. Which type is right for you?