To start taking payments on your website, you have to go through online payment service providers (PSPs). This process entails a number of steps, which this blog post tries to break down.
……………………………………………………………………………………………………………………………………………………
Incorporating a credit card payment solution into your site is easy if you follow the following key steps. The steps are part of a useful guide we’ve compiled to help our clients apply for, enable, and take payments online. In doing this, we attempt to break down the entire process and to make the process seem less cumbersome.
Step 1: Apply for an IMA:
To take any credit card payments both online and offline, you need to be connected to a bank account. In order to do that, you need to apply for a merchant account with a bank. However, if you desire to take payments online, you’ll specifically need an Internet Merchant Account (IMA).
Your acquiring bank will provide you with a strict set of rules that you will need to comply with, this may include their own security procedures and government regulations. Be advised that some credit card providers have developed a technology which allows card holders to authenticate themselves online.
It should be also noted that it is possible to process internet payments manually, using a regular point of sale system. This is not recommended for security reasons and because of the amount of work it takes to manually process payments.
Step 2: Select a PSP:
You will also need to use a payment service provider (PSP). PSPs most commonly handle the webpages where customers submit their payment details. It offers a point-of-sale terminal, which collects card details, screens fraudulent activity and securely transfers the details to your acquiring bank for processing.
Alternatives:
There are various alternatives for companies who wish to avoid the challenge of implementing one of the above solutions. One alternative is to use a payment processing company. Utilizing a payment processing company eliminates the need to apply for an IMA and PSP separately.
With every good, comes the bad. Using a payment process company has your customers going to the payment processing company’s website to make payment. A perfect example of this is Pay-Pal.