Internet-based Payment Solutions

For the merchant who wants to get online fast with a limited start-up budget, internet-based credit card processing is one of the best choices.

A payment gateway facilitates e-commerce payments by authenticating the parties involved, routing payment related data between these parties and the concerned banks/financial institution in a highly secure environment and providing general support to them.

Payment Gateway enables you to manage the authorization and settlement of encrypted payment messages over the internet. It handles certification management, routing, decryption and encryption, and key management for SSL. Merchants use their gateway to send the information for their credit card processors to process their transactions over a secure Internet connection.

				Acquiring Bank	Credit Card Network	Issuing Bank
		Payment Gateway

You need to either have access to a secure server (SSL) or be signed up for a Secure Payment Gateway service. Secure Electronic Transaction (SET) is an encryption technology that helps protect the transfer of payment information over the Internet. SET technology protects payment information in four ways: It enables a cardholder to authenticate that a merchant is authorized to accept payment cards in a secure manner. It enables a merchant to authenticate the payment card being used in the transaction. SET uses an advanced encryption system to protect personal payment information during transfer over the Internet. SET technology makes sure the payment information is read only by the intended recipient. SET enables both cardholders and merchants to safely transfer payment information online.

Click here to read more about the Secure Gateway

Payment gateway offers you the following benefits:

• Credit card authorization in real time
  
• Secure links between customer, merchant and bank
  
• Fast and efficient transaction processing
  
• Customer refund facilities
  
• Real-time reports
  
• Multi-currency settlement if required

When a customer attempts to buy goods from your shop using a credit or debit card, payment gateway does three vital things:

• Authorization - Checks that the credit is acceptable.
• Clearing - Passes the transaction to your bank, so that you receive payment.
• Reporting - Records the transaction and allows you to view it (and all other transactions) using the payment gateway report facilities.

1. Authorization

Any purchase made with a credit or debit card via payment gateway must first be authorized by the card issuer. The authorization request will have one of three answers:

• Accepted - the card is accepted and the sale can go ahead
  
• Rejected - the card is rejected and cannot be used for this transaction
  
• Invalid data - there is some problem with the card details supplied (typically with Switch card issue numbers)

2. Clearing

At the end of each business day payment gateway groups all your transactions together and sends them off to your bank in a single batch. The bank then processes the transactions - this process is called clearing. It typically takes 3 - 5 business days (depending on your bank) for money to arrive in your bank account.

• Accepted batches
  Most batches are accepted without any problem and the payments appear on your bank statement marked with the date the bank processed them. This is normally the day after the transaction date. Most bank statements show only two credits to your account - one is the total of all sales you made on a particular day using switch cards, the other the total for credit or visa debit cards.
  
  
• Rejected batches
  Occasionally a batch of transactions sent to the bank will be rejected. If this happens payment gateway will rectify any problem and send the transactions again on the next business day, along with any other transactions recorded that day. You don't need to do anything yourself. When a rejected batch is resubmitted and then accepted, the result is that your bank statement shows a credit which reflects two days worth of sales instead of one. Don't worry about this. Payment gateway's reporting pages will help you to check that everything is OK.

3. Reporting

Payment gateway records all transactions and allows you to view them, print them out or even download them to your own computer for further processing in a spreadsheet or other application. The basic payment gateway reports page shows the following transaction facilities:

• All Transactions - every transaction done via your site this week
  
• Transactions not yet settled - transactions which have not yet been sent to the bank yet, but are waiting to be sent (typically today's transactions)
  
• Settled Transactions - transactions which have been sent to the bank
  
• Invalid transactions - transactions where authorization was not given, and which will not be sent to the bank

Real-time online Internet credit card processing systems include one or two methods of integrating the gateway to your website.

• "Weblink" methods use HTML to link your site to customizable payment pages located on a gateway's servers.
  
  
• API methods use application program interfaces to transmit data from payment pages located on your servers to the gateway.
  

Click here to read more about the Real-time Processing


Manual processing: Virtual Terminal Solution

Virtual Terminal solution allows merchants who have Internet access, to manually enter transactions without the need for an Internet storefront. This is the perfect solution for merchants who manually enter credit card transactions for mail or phone order sales.

This method allows you to enter sales one-by-one from any Internet-connected browser.

The Virtual Terminal is an Internet based application and will work from any type of computer that has Internet access. This allows complete automation of credit card processing, issuing invoices and receipts and you can provide recurring billing and a customer database.

Advantages of virtual terminals:

• Much faster than standard dial-up authorization systems.
• Remove the complexity and expense normally associated with real-time credit card processing.
• Enter credit card orders manually for those phone, mail and in person orders you may get.

Payment Gateways:

Some of the more common Secure Payment Gateway services:

• Authorize.Net
• Payflow
• LinkPoint
• Plug'n Pay

Authorize.Net

Authorize.Net is a server-based transaction processing system developed by NETSolutions International, Inc. that enables businesses with approved merchant accounts to authorize, process, and manage credit card and electronic check transactions in a real-time, online environment from any computer with an Internet connection and a Web browser. There are two basic components of the Authorize.Net system: Authorize.Net Virtual Terminal and Authorize.Net WebLink

Existing Internet storefronts can be linked by the supplied HTML code, or by packaging with our Shopping Cart program you can instantly add the transaction processing capabilities of Authorize.Net to your Internet store.

When online customers are ready to purchase products or services from a merchant's Web site, WebLink either captures the necessary information (name, credit card number, etc.) from the site's own secure transaction page or displays a standard WebLink transaction page, hosted on an Authorize.Net server, for the customer to fill out.

This information is encrypted using 40 or 128 bit Secure Socket Layer technology and sent to an Authorize.Net transaction server. The server then sends the data through the authorization network to the appropriate card issuer's bank over a secure, proprietary connection. When the authorization process is complete -- this takes around five seconds -- the customer receives an approval or decline response, and the Authorize.Net server stores the transaction. Transactions are automatically settled each day and funded within 2-3 days.

To link a merchant's web site to the Authorize.Net system, you only need to insert a few lines of HTML code that they provide to establish the link. Authorize.Net supports most available shopping cart software, so it integrates easily with most e-commerce solutions.

Merchants can also check the status of transactions or run reports on past activity by going to the Authorize.Net website and logging on to their own password-protected Authorize.Net site. Online businesses can also use the Authorize.Net Virtual Terminal to enter payment information manually if customers prefer to call in with their credit card information.

Authorize.Net Virtual Terminal

Businesses with an Authorize.Net account simply access the Authorize.Net Virtual Terminal through their website using any web browser. After logging on to the system using a unique user ID and password, merchants can access their services. This includes authorizations for purchases, credits and returns, status and activity reports, and much more.

To authorize credit card transactions, the merchant completes an electronic form that provides the Authorize.Net system with the information it needs to complete the transaction. This information is encrypted using the latest 40 or 128 bit Secure Socket Layer (SSL) 3.0 technology and sent to an Authorize.Net host server. The server then sends the data through the authorization network to the appropriate card issuer's bank over a secure, proprietary connection. When the process is complete -- this takes around five seconds -- the merchant receives an authorization number, and the Authorize.Net server stores the transaction. Transactions are automatically settled each day and funded within 2-3 days.

Merchants can also check the status of transactions, automatically bill customers for recurring charges, or run a variety of reports right from the Authorize.Net Virtual Terminal.

Verisign Payflow Link

Payflow Link enables merchants to connect their consumers to a secure VeriSign-hosted order form and use it to automate order acceptance, authorization, processing, and the management of transactions.

Payflow Link provides an easy to use HTTP based solution that is ideal for businesses processing less than 1,000 transactions per month. Payflow Link is the solution of choice for merchants looking for a fast and easy way to conduct secure automated transactions over the Internet.

Payflow Link enables merchants to connect their consumers to a secure VeriSign-hosted order form and use it to automate order acceptance, authorization, processing, and the management of transactions. It's as simple as entering an HTML Hyperlink into your existing Web site.

LinkPoint

LinkPoint enables your business to accept payments for goods and services through the Internet. They offer several options for you.

Startup merchants who want to get online fast, as well as for merchants who already have a Web site and want a secure, fast and reliable e-commerce software package. The LinkPoint Secure Payment Gateway translates information from a merchant¡¯s Web site into a format that can be read by an electronic processing system.

By operating in real time, a merchant can immediately capture funds upon delivery of goods to customers. The LinkPoint Secure Payment Gateway supports all sales, returns, real-time authorizations, captures, batch-settlement processing and refunds. State-of-the-art technology provides merchants with benefits which include fraud screening every transaction submitted and real-time reporting via their Web browsers.

LinkPoint International has created three unique and user-friendly payment solutions to serve the e-commerce needs of any merchant:

LinkPoint Select API is preferred by developers, software programmers, Internet service providers (ISPs) and commerce service providers (CSPs) with an advanced knowledge of the C or Java programming languages to integrate secure credit card processing into both simple and complex e-commerce Web sites. Customers pay for products and services online with a credit card without ever leaving the merchant¡¯s Web site. Secure Sockets Layer (SSL) technology is used to encrypt and pass confidential transactions and order information directly from the e-commerce site to the LinkPoint Secure Payment Gateway.

The LinkPoint Select API (application programming interface) includes modules to calculate tax, shipping and to enable the sale of digital content through electronic softgood downloads (ESDs). In addition, LinkPoint Select API provides sales, returns, real-time authorizations, purchasing cards and real-time reports.

LinkPoint Central is a way for merchants to process monetary transactions. It provides one central, secure location where you can manage everything related to transaction processing, from running secure transactions yourself to setting up your web site to run transactions for you, from preventing fraud to reviewing transaction reports to getting technical support and help. Everything is readily available right here.

LinkPoint Central incorporates LinkPoint Basic and Virtual LinkPoint, two of the main processing products available for merchants on the LinkPoint Secure Payment Gateway, making them easily accessible in one central location:

LinkPoint Basic

LinkPoint Basic is a payment-posting tool that uses HTML. Ideal for merchants with Web sites, LinkPoint Basic HTML script can be easily integrated to enable secure payment processing to the LinkPoint Secure Payment Gateway. Virtual LinkPoint is provided as part of the LinkPoint Basic package. In addition, LinkPoint Basic provides sales, returns, real-time authorizations, purchasing cards and real-time reports.

LinkPoint Basic allows merchants to choose from three different options for capturing and processing credit card and electronic check information:

• PayOnly - process credit card transactions only
  
• FullPay - LinkPoint Basic does all the work for you. Merchants send their basic merchant information and the gateway does the rest.
  
• PayPlus - collects basic data, as well as transaction, ordering and shipping information.
  

Features	Advantages
Simple integration	Makes any Web site e-commerce- enabled by adding simple HTML code
Fraud protection	Provides crucial preventive measures that allow merchants to block specific credit card numbers and Internet protocol (IP) addresses
Address Verification Service (AVS)	Allows the merchant to validate the billing address
Reports and recordkeeping tools	Provides real-time management reports via the merchant's Web browser
Shopping cart software vendors	Many software companies have integrated LinkPoint Basic into their shopping cart software to facilitate ease of use and configuration with merchant Web sites
E-mail notification	Merchant and customer are both notified of pending order and transaction approvals via e-mail

Virtual LinkPoint empowers merchants with the Internet equivalent of a point-of-sale (POS) terminal and software without the hassle or expense of hardware/software maintenance. Virtual LinkPoint allows merchants to manually enter credit card transactions on a PC through a secure connection to the Internet. Sales, returns, authorizations and real-time reports are all provided by Virtual LinkPoint. Ideal for the merchant who requires a PC-based solution, Virtual LinkPoint enables merchants to process credit card transactions via any Internet-connected computer. Virtual LinkPoint processes customer orders received from a Web site, telephone, fax, mail or e-mail, then generates sales, return authorizations and reports through the LinkPoint Secure Payment Gateway.

Features	Advantages
Simple to use	Merchants can process credit card transactions without investing in hardware or software
Internet-based--eliminates the hassles of modem configuration	Updates are instantaneous--no hassle with downloading software
Real-time reports and record-keeping tools	Processes transactions and accesses reports anytime, anywhere
Fraud Protection	Provides crucial preventive measures that allow merchants to block specific credit cards numbers and Internet protocol (IP) addresses
Address Verification Service (AVS)	Helps merchants validate the customer's billing address
E-mail notification (optional)--merchants can send e-mail receipts to customers when transactions are completed	Allows merchants to track credit issuance and shipment confirmation of hard goods

Provider:

Cardservice International

Plug'n Pay

PNP's transaction programs have been developed specifically to meet the needs of today's Internet merchants. They offer an extensive lineup of programs designed to maximize sales, enhance security, protect merchants from chargebacks and streamline the management of your site. They were one of the first to offer this type of service as their only business.

SecurePay provides merchants with an easy to use, secure credit card processing interface for multiple types of online stores.

SecurePay Highlights

• Secure Credit Card Processing
  Since all transactions are processed via a secure server, your customers will feel more comfortable ordering online.
  
• Flexible Payment Processing Options
  Your Website can automatically process your customers' credit cards, or you can use the Web terminal for phone, FAX or mail orders.
  
• Recurring Billing Feature
  If you bill your customers the same amount each month, SecurePay can automatically bill the credit cards for you.
  
• Shopping Cart Solutions To Fit Your Business Needs
  Whether you sell one product or thousands, we have a shopping cart solution for you. We have carts that can handle multiple options for products, such as sizes and/or colors, as well as simple one product carts.
  
• Easily View Transaction History
  SecurePay makes it easy for merchants and distributors to view transaction history reports. Simply enter report criteria like today, this month, last month, or any one of multiple report criteria and a report will be generated within a few moments for you to view online.