Online Credit Card Processing

Credit Card processing requires quite a few steps, and several different companies are involved, such as your store, your payment gateway, your merchant account provider, and the bank that issued the customer's credit card. These drawings and explanations provide a simplified version of credit card processing from a merchant's point of view. If you want more information, you can read the detailed version.

Authorizing a Purchase

Authorizing is the process of getting approval for a credit card purchase. Although the sale is finalized, no money changes hands at this point.

1. The customer types their credit card information into the ShopSite order form.
2. ShopSite sends the transaction information to the merchant's payment gateway for authorization.
3. The payment gateway sends the transaction information to the banking network and receives back either an authorization code or a "transaction declined" message.
4. The payment gateway passes the authorization code (or declined message) back to ShopSite.
5. ShopSite displays a receipt to the customer, or a "problem" message if the transaction was declined.

Capturing and Settling

A "capture" is a request by a merchant for funds that were previously authorized. Settling is when the bank that issued the credit card transfers the funds to the merchant's account. The funds are usually available in the merchant's local bank account within a few business days.

1. The merchant logs into the ShopSite back office, selects one or more orders that have shipped, and clicks the Bill Orders button.
2. ShopSite sends the capture request to the payment gateway.
3. The payment gateway sends the capture request to the banking network.
4. The banks that issued the credit cards transfer funds to the merchant's account at the acquiring bank or ISO.
5. The acquiring bank or ISO transfers the funds to the merchant's local bank account.
6. The merchant can access the funds at the local bank.

You must have both a merchant account and a payment gateway account, and the costs for each vary by provider. Generally speaking, there is a one-time setup fee for each account, a discount rate applied to each transaction, and a minimal per-transaction fee. The discount rate is a percentage of each sale, usually between 2% and 3%. Compare the offerings of our preferred providers to find the services and prices that work best for your business.

All of our preferred providers make it easy to apply for a merchant account and a compatible payment gateway account. Find yourself in these scenarios, and then click on the applicable links.

• If you need both a merchant account and a payment gateway account, click on any of the links for our preferred providers to learn about their services and rates and to fill out an application.
• If you have an existing brick-and-mortar store, you may already have a merchant account for accepting credit cards in your store, but it may not be approved for internet transactions in which the credit card is not present. Check with your merchant account provider. If you are approved for internet transactions, you just need an account with a payment gateway. If you cannot add internet capability, you must get a new merchant account and a payment gateway account from one of our preferred providers.
• If you currently have an internet merchant account, contact the provider and find out which payment gateways you can use with it table of merchant accounts and gateways, and then apply with a compatible gateway.
• If you already have an account with a payment gateway, check our table of merchant accounts and gateways, and then apply for a compatible merchant account from one of our preferred providers.