Credit Card E-commerce Enablers
Companies that have a merchant account still need to buy or build a means of handling the online transaction; securing the merchant account is only step one in a two-part process.
■ Today, Internet payment service providers (sometimes referred to as payment gateways) can provide both a merchant account and the software tools needed to process credit card purchases online.
For instance, Authorize.net is an Internet payment service provider.
■ The company helps a merchant secure an account with one of its merchant account provider partners and then provides payment processing software for installation on the merchant’s server.
The software collects the transaction information from the merchant’s site and then routes it via the Authorize.net “payment gateway” to the appropriate bank, ensuring that customers are authorized to make their purchases.
■ The funds for the transaction are then transferred to the merchant’s merchant account.
■ CyberSource is another well-known Internet payment service provider.