Payment processing solutions for ecommerce merchants have two parts. Separate, yet working together, both are important to the success of all payment processing solutions in creating profits and increasing sales.
The first element all payment processing solutions is the merchant account itself. The second element is the secure payment gateway.
The merchant account part of payment processing solutions establishes a line of credit at an acquiring bank. Different payment processing solutions providers work with different banks. The decision on which bank a payment processing solutions provider uses is based on the underwriting criteria of the bank.
The payment processing solutions provider submits the application to the bank which then approves a merchant to accept cards based on underwriting criteria. The bank underwrites the account based on criteria to determine that merchant submitted by the payment processing solutions provider will remain in business, will not have excessive chargebacks, treats customers’ well and has the experience to manage the account.
Sometimes a bank offers merchant accounts directly to its customers without using a 3rd party payment processing solutions provider. However, it is common for businesses to obtain accounts through a payment processing solutions provider, commonly called an independent sales organization, which are registered to offer the accounts on behalf of the bank.
When a business is accepting cards online, there must be a way for consumers to buy from the merchant’s website. That’s where a secure payment gateway fits into the picture.
The secure payment gateway is ecommerce software which connects to a website through a simple interface. A secure payment gateway is an integral element of accepting payments online. As IP terminal applications continue to grow at POS, a secure gateway is also becoming part of the retail environment.
The secure payment gateway is connection to the banking network. When a customer buys online, the authorizations and approvals or denials on the credit cards flow into the banking network through the secure payment gateway.
The correct choice of a secure payment is crucial to providing a solid infrastructure for payment processing solutions.Large ecommerce businesses use the secure payment gateway to dynamically manage ecommerce processing from a single payment processing gateway control panel. In this way, financial operations are streamlined and duplication of functions is eliminated, increasing productivity.
Most secure payment gateway software has rule-based filtering parameters and cascading filter to safeguard companies from fraud. Customizable strategic tools built into the secure payment gateway lets merchants defend themselves against cybercriminals hiding out in cyberspace. Secure payment gateway fraud protection enables merchants to quickly set policies for accepting and rejecting transactions for all payment processing solutions.
Secure payment gateway software has security features to protect merchants against security breaches. For example, merchants who need recurring billing as part of payment processing solutions find a secure payment gateway eliminates storing cardholder information.
Merchants still must implement and update internal security protection because payment processing solutions are unable to keep companies safe from attacks from their internal employees or outside vendors.The majority of payment processing solutions security breaches has been tracked back to merchants that haven’t taken the most basic precautions such as limiting who has access to the system or changing passwords on a regular basis.
Reporting functions of a secure payment gateway are also important. The best payment processing solutions give merchants the ability to customize reporting.