Difference between revisions of "Draft:Understanding Online Payments"
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There are two methods for acquiring an IMA and a gateway. They are:<br /> | There are two methods for acquiring an IMA and a gateway. They are:<br /> | ||
| − | + | * '''All-in-One Payment Solutions''' (IMA and gateway are bundled together) <br /> | |
| − | + | * '''Payment Gateways''' (Mix and match your IMA and gateway) | |
| − | |||
| − | |||
| − | |||
| − | |||
With an all-in-one payment solution your IMA and gateway are acquired from a single vendor. This option is beneficial if you want to: | With an all-in-one payment solution your IMA and gateway are acquired from a single vendor. This option is beneficial if you want to: | ||
:* Manage just one vendor for all online payments | :* Manage just one vendor for all online payments | ||
:* Get all of your support from a single source | :* Get all of your support from a single source | ||
:* Use easy-to-access reporting for all payment methods | :* Use easy-to-access reporting for all payment methods | ||
| − | Integrate only one application on your website | + | :* Integrate only one application on your website |
| − | + | Payment gateways combine separate IMA and gateway providers. Consider this if you already have a physical store presence with IMA capabilities from your existing bank. A payment gateway allows you to: | |
| − | Payment gateways combine separate IMA and gateway providers. Consider this if you already have a physical store presence with IMA capabilities from | ||
| − | your existing bank. A payment gateway allows you to: | ||
:* Keep your existing IMA as you expand online | :* Keep your existing IMA as you expand online | ||
:* Connect a compatible gateway with your existing IMA | :* Connect a compatible gateway with your existing IMA | ||
| − | :* Retain the same gateway if you change IMA providers | + | :* Retain the same gateway if you change IMA providers |
| − | + | Because of credit card fraud and identity theft concerns, some customers are uncomfortable providing their credit card information on new websites or any that are unfamiliar to them. You can service those customers by accepting alternate payment methods like PayPal. This brings us to '''Alternative Methods of Payment'''. With this option, many businesses — especially new or small businesses — find they can: | |
| − | Because of credit card fraud and identity theft concerns, some customers are uncomfortable providing their credit card information on new websites or any that are unfamiliar to them. You can service those customers by accepting alternate payment methods like PayPal. With this option, many businesses — especially new or small businesses — find they can: | ||
:* Increase sales on their site. Customers can select an alternate payments provider that they already trust. | :* Increase sales on their site. Customers can select an alternate payments provider that they already trust. | ||
:* Reduce shopping cart abandonment. | :* Reduce shopping cart abandonment. | ||
:* Add flexibility for their customers. Customers can pay without sharing personal and credit-card information with businesses. | :* Add flexibility for their customers. Customers can pay without sharing personal and credit-card information with businesses. | ||
Revision as of 02:43, 20 December 2012
In order to accept credit card payments online, you need:
- An Internet Merchant Account (IMA)
- A payment gateway
Internet merchant accounts are merchant accounts specifically designed for processing credit cards online. Typically, the Internet version has more security controls than your traditional merchant account.
A payment gateway is needed to move the money between your shopping cart and the banks or credit card companies involved with the transactions.
There are two methods for acquiring an IMA and a gateway. They are:
- All-in-One Payment Solutions (IMA and gateway are bundled together)
- Payment Gateways (Mix and match your IMA and gateway)
With an all-in-one payment solution your IMA and gateway are acquired from a single vendor. This option is beneficial if you want to:
- Manage just one vendor for all online payments
- Get all of your support from a single source
- Use easy-to-access reporting for all payment methods
- Integrate only one application on your website
Payment gateways combine separate IMA and gateway providers. Consider this if you already have a physical store presence with IMA capabilities from your existing bank. A payment gateway allows you to:
- Keep your existing IMA as you expand online
- Connect a compatible gateway with your existing IMA
- Retain the same gateway if you change IMA providers
Because of credit card fraud and identity theft concerns, some customers are uncomfortable providing their credit card information on new websites or any that are unfamiliar to them. You can service those customers by accepting alternate payment methods like PayPal. This brings us to Alternative Methods of Payment. With this option, many businesses — especially new or small businesses — find they can:
- Increase sales on their site. Customers can select an alternate payments provider that they already trust.
- Reduce shopping cart abandonment.
- Add flexibility for their customers. Customers can pay without sharing personal and credit-card information with businesses.
