In today’s age of the Internet, people communicate with loved ones, research things they need for their studies or play games over the internet. Most people find the Internet extremely useful when they’re searching for information about a particular product or service since the Internet is known for being full of information. This saves a person time and money in their quest for knowledge since all that information is within the reach of their fingertips.
Buying and selling products and services is a part of life. The Internet is no different. People now use the Internet to market and sell their products. At the same time, some people also use the Internet to compare the different products that are available out in the market. This is what people refer to as “e-commerce.”
People who are new to the field of e-commerce often wonder how to pay for something that has been bought over the Internet. There are many types of payment processors available for a person to use.
Debit Processing is a way of transferring money from the buyer’s bank account to the seller’s bank account. This type of payment processing is not commonly used in e-commerce since it requires the buyer and the seller to be face-to-face with each other in order to complete the transaction. Nevertheless it is still a type of payment processing that is found in most stores today.
The seller simply has to swipe the buyer’s bank account into the terminal, type in the total amount the buyer is purchasing, and then give the terminal to the buyer in order for them to enter their personal identification number (PIN). After doing so, two copies of the receipt are printed out by the machine. Two copies are necessary so that the buyer and the seller both have copies of the receipt as proof of the transaction.
Credit card processing is a popular type of payment processing. This occurs when a buyer uses his/her credit card in paying the seller of a product or service. This can be done face-to-face or with no personal appearance. An example of a transaction in which no personal appearance is required is when someone is buying something over the Internet. When a face-to-face transaction occurs (e.g. in a store) the buyer pays via credit card and leaves the store with the product in hand. After 1-2 days, the seller is paid by the credit card processor of the business. The credit card processor, in turn, is paid after 30 days by the buyer’s credit card company. The customer’s credit card company is in charge of billing and collecting payment from the buyer.
PC and Internet processing is also a type of processing which involves the use of credit cards. This type of processing is done without requiring the buyer and the seller to be face-to-face with each other for this transaction. The processing of these credit cards is done on the secure servers of the seller’s credit card processor.
A non-automated way of processing credit card payments of this kind of transaction is when the buyer completes the required contact and credit card information on the seller’s website. Once the seller receives the information, a sales representative of the business will call the buyer to confirm the order. Once the order has been confirmed, the representative will continue to manually complete the transaction over the business’s computer, which has Internet access while continuing to speak with the buyer over the telephone in case a need for additional information comes along.
E-commerce or website processing is a type of payment processing employed by those engaged in e-commerce. It is similar to PC and Internet processing except that there is no need for a sales representative. This is due to the fact that the seller’s website is directly connected to the credit card processor’s system so that the transaction goes through automatically.
Phone authorization is done when an employee at the counter calls their credit card processor via any phone or mobile phone. The person simply has to dial the number provided by the credit card processor, input their the store merchant ID number, the total amount purchased, the card’s number, and the card’s expiration date. If the card is over its credit limit then the system will automatically tell the seller that the transaction cannot go through or the system will return an approval code for the merchant.