How is a credit card transaction processed?  

The following steps summarize a credit card transaction processed through the payment gateway: 

Step 1: The merchant submits a credit card transaction to the payment gateway on behalf of a customer using a secure connection from a website, at a retail location, from a mail order/telephone order (MOTO) center, or using a wireless device.

Step 2: The payment gateway passes the transaction securely to the Credit Card Interchange (a network of financial entities that manage processing and settlement) using the merchant bank’s processor.

Step 3: The Credit Card Interchange routes the transaction to the customer’s credit card issuer.  

Step 4: The credit card issuer approves or declines the transaction based on the customer’s available balance and passes the transaction results and (if approved) the appropriate funds back through the Credit Card Interchange.

Step 5: The Credit Card Interchange relays the transaction results back to the payment gateway using the merchant bank’s processor.

Step 6: The payment gateway sends the transaction results to the customer and/or the merchant.

Step 7: The Credit Card Interchange passes the appropriate funds for the transaction to the merchant’s bank, which then deposits funds into the merchant’s bank account.

What makes my internet credit card processing secure?

Our preferred gateway provider uses SSL, an Internet protocol that safeguards electronic communications between two or more computers. When transmissions are sent over an SSL connection, data is encrypted and cannot be modified in transit by other parties on the Internet. Authorize.Net uses both SIM (Server Integration Method), which provides merchants with a hosted payment form (the Web page that collects the customer's payment information) and a hosted receipt page (the Web page that reports a summary of the transaction back to the customer) and AIM (Advance Integration Method), which allows merchants to customize their own payment form (the Web page that collects the customer's payment information) and receipt page (the Web page that reports a summary of the transaction back to the customer), as well as submit transactions over an end-to-end Secure Sockets Layer (SSL) connection.

What can I do to reduce the number of chargebacks I have every month?

Several things can be implemented to reduce your chargebacks and associated costs:

• Be willing to give refunds under most circumstances
• Have in writing a good, clear policy for product returns
• Ensure you are using the AVS (Address Verification Service) feature of your merchant account & gateway.  Additionally, use of the Fraud Detection Suite and its filters will also reduce your chargebacks and lower your costs, thereby saving you money.

Apply now!  We can have you up and running in about 48 hours!