Merchants may offer sales through an internet store solely or a website to augment what is offered through retail (face-to-face) or phone, fax and mail order (MOTO) sales. The internet has become the most popular means by which to shop without leaving home, and internet sales have skyrocketed! This transaction mode may also be referred to as eCommerce.
Customers enter their credit/debit card numbers and security information via the internet checkout site which is available 24/7. The merchant will not actually handle the card itself, and therefore will not swipe the card through a card reader, nor do they manually enter the card information because the customer does so themselves. These transactions may be referred to as “card not present”. These transactions are controlled by the cusomer, and as such, significantly reduce the resources required to man the process on behalf of the merchant.
Customer is responsible for manually entering the credit/debit card and customer information, as well as security information (including expiration date and security code (CVV2). The customer obtains his or her own receipt through the website and/or is emailed one by the merchant/website.
Transaction information is passed through the Website’s Payment Gateway to the Card Issuer to obtain approval. Approval is transmitted back to the Website, and the Customer concludes the sale. The approval/disapproval process between customer and card issuer takes approximately 3-15 seconds, depending upon the connection.
Typically sale funding is routed to the Merchant’s Bank within two business days, though some exceptions may apply. Credit card processing fees may be deducted daily or monthly, depending on the type of account and merchant’s preference.
After the sale is processed, the merchant will receive an email with the sale and customer information to fulfill the order.
Security Recommendations for Internet/eCommerce Credit Card Processing
To ensure the safest transactions, surest funding and lowest rates, merchants are advised to follow the recommendations below:
- Maintain the security of the customer’s credit card numbers. Ensure the credit card number is truncated (revealing only the last four digits) and the expiration date is not printing on the receipts.
- Refund errors before batching out if possible.
- Maintain receipts in chronological order, securely.
- Ensure the terminal is settled at day close.
- Make a clear disclosure to your customer as to when they can expect the purchased product. You can charge your customer prior to shipping the product or when the product ships. The authorization is only valid for 30 days.
Payment Gateway and Shopping Carts
An ecommerce payment gateway is a service that authorizes credit card payments and processes them securely on the internet with a user’s merchant account. Often a merchant account and payment gateway are set up in one process through the same company. The functions of a payment gateway and an ecommerce shopping cart are very different. An ecommerce shopping cart allows for customers to put goods into an online cart, securely accepts customers payment and shipping information and facilitatates the distribution of that information to merchants. In some cases, both the payment gateway and shopping cart are integrated as part of an all-in-one solution.
Cornerstone’s certified payment professionals will help assist you in understanding your payment processing options and work with you to design a solution that best fits your needs.
Cornerstone is compatible with most popular payment gateways on the market. Below is a sampling of gateways we support. Don’t see your gateways? Chances are we are able to support it.