One of the hardest problems that online marketers face is credit card processing. There are steps that need to be taken as well as security procedures that have to be implemented to keep the website running smoothly. The integrity of the website is scrutinized because of the nature of the transactions. Credit card processing for niche markets like lenders requires more security because the information passing through can lead to theft.
Making Payments Happen
Credit and debit cards have made a lot of difference for brick and mortar companies. They have made it easier for buyers to come into the store and pay for their purchases. They have also made it possible for consumers to buy more expensive items without the need to have a thick wad of bills in their pockets. They have also fueled online marketing in selling products and services, including lending. The bulk of online payments are done via credit and debit cards, and this is a system that is a good fit for online marketers. There are several parties to a credit card transaction. The credit card holder pays for goods bought via a credit card. The merchant swipes the card to accept payment. This sends a signal to the credit card processor, which notifies the credit card’s issuing bank. The issuing bank pays the amount electronically to the processor. Upon receipt of payment, the processor takes their fee and splits it with the credit card company. After taking their fees, the processor deposits the remaining balance to the merchant’s bank account. Billing and collection of payment from the buyer are handled by the issuing bank.
Advantages of Credit Card Payment Processing
Online transactions thrive on credit and debit card payments. Credit card users buy more goods and transact more often because of the ease of use. Merchants get paid automatically, with the payment deposited automatically to their bank accounts. Online marketers do not need to worry about fraud because fraud detection is done by the credit card processor. The payments are secure because actual cash does not change hands. Additionally, new technology securing the transactions are implemented on a regular basis. This ensures that the merchant and the buyers are safe from identity theft as well as misuse of the card.
Another advantage for a merchant is a credit card processing loan facility. This serves as a financing facility for the merchant, and is provided by a credit card advance lender. The advance lender is paid via a percentage of the daily transactions. The repayment is done automatically until the loan is fully paid. This facility gives the merchant flexibility in financing the business operations, or for expansion. The advance lender will determine how much they can loan the merchant based on the volume of daily transactions.
Choosing a credit card processing facility should take into account other factors besides the ability to quickly collect payment. It also involves fraud detection and secure transaction processing. Having a loan facility is an added bonus, which can be availed for business expansion purposes.