Payment Gateway

August 19, 2008

If you want to to open an online store in order to sell out products and services, then the first and most basic thing you need is a payment gateway so that you can accept payments online. These days, many web sites run online shopping modules, with the support of various Payment Gateways which are available worldwide. Payment Gateways work as an intermediary between the customer and the merchant, and help them by making secure transactions.

A payment gateway is an e-commerce service provider that authorizes payments for e-businesses, online retailers, et cetera. Whenever a buyer or a consumer purchases a product from merchant that has a payment gateway, the payment gateway comes into action and performs certain tasks to process the transaction.

Payment Gateway creates an automatic payment deal between the customer and the merchant. It is usually a third-party service, which is actually a system designed to process, verify, and accept or decline credit card transactions on behalf of the merchant through secured Internet connections. A payment gateway is a network that allows a merchant to accept credit cards and other forms of electronic payments. These payment gateways are extremely secure so that they can safely take care of whole transaction online. When referring to payment gateways used for Internet transactions, it may also be called an IP payment gateway.

In IVR, or Interactive Voice Response Service, the customer enters the credit card details on the phone, using an automated answering service. In the case of orders via web site, the browser encrypts the information, which then passes between the browser and the web server using SSL encryption. CyberSource, VeriSign, PayPal and Authorize.net are some of the popular payment gateway service providers allowing merchants to accept credit cards through their web sites over an Internet Protocol connection.

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Credit Card Chargeback

August 5, 2008

Discovered some fraudulent transaction on your monthly Credit Card statement? Use Chargeback to get Reversal of a Credit Card Transaction. There may be the cases when you find your Credit Card has been charged without your consent.

In case you are not satisfied with the quality of product or service then too you can make use of chargeback option available with all the Credit Card Companies. Theses types of transactions may include the situations where:-

•Card holder does not authorize the transaction.
•Transaction was processed more than once.
•Customer never received merchandise or services.
•Error in transaction amount.
•Incorrect amount processed in transaction.
•You receive a product differ from what was described or promised.
•Card Consumer is not satisfied with quality of product or service.

In case of chargeback Bank will investigate complaint and will take back the amount of original transaction from merchant’s account, unless the merchant can verify the transaction was genuine. Sometimes the complaint is not genuine and consumer’s claim gets denied, still in these cases merchant will be sometimes get charged processing fees.

Majority of the chargeback cases do happen due to technical problems between the merchant and the issuing bank. For example a consumer was charged twice for same transaction or other such mistakes like authorization process of a Credit Card where transaction is declined by the issuing Bank and the account is still charged.

A merchant is billed for the chargeback along with the fess and the settlements associated with the credit card transaction. A chargeback may be appealed by the merchant and if chargeback is found to be untrue then merchant will get a reversal. Dishonest consumers normally abuse the chargeback system by making a purchase over Internet with Credit Card and then issuing a chargeback on receiving the product or service leading to difficulty in recovering payment for merchants.

In the end, chargeback can be considered as safeguard against your Credit Card Transaction. As a Credit Card consumer one must have knowledge about all its technical details like rate of interest, annual fees and specially the things like chargeback.

Prepaid Credit Card

July 10, 2008


Prepaid Credit Card – A Solution For Bad Credit

Prepaid credit cards are the most excellent alternatives for bad credit people and for those who want to get better credit score. There will be not be any inspection for your employment and credit rating too if you opt for Prepaid one. But you are required to deposit some amount of money in your account for your credit limit. You can deposit more money when your card has a low balance and you want to use it to make more purchases.

This card is the best option for teens, students, and kids who have no credit history but need a card. They are also a good choice for adults who prefer to keep a close eye on how much they spend. These cards are easy to use at grocery stores, gas stations, and online stores. These cards are also advantageous for small businesses. Small business owners with bad credit can apply for prepaid credit cards.

These cards are quite similar to regular cards but it is easier to qualify for these than regular cards. They can be used worldwide and do not charge interest like being charged on regular cards.

Few Important Questions about Prepaid Credit Cards

1. What is a prepaid credit card?
It is a reloadable card issued by a bank in order to authorize payment for purchases. However, there is a spending limit, which is determined by the amount of money deposited into the account. Since you are not allowed to use it beyond the limit, there is no interest charged. It is just like pay-as-you-go; there are no bills to pay after you use the card.

2. How can I apply for a prepaid credit card?
It is very easy to apply for a prepaid card. You can apply online. Simply click on the sign up button, fill out the form, and you can pay by whichever payment method you prefer: personal checks, money order, or bank wire transfer.

3. How old do you have to be to apply for a prepaid credit card?
Many prepaid cards have age restrictions. As a result, some providers will ask parents to activate the card in order to get their permission, which will thus allow children under the age limit to use the card. In general you must be at least 18 years or older in order to get a prepaid card; if you are under 18, you need to have your parents’ sign up for the card account.

4. If your prepaid credit card expires and still there is a lot of money in your account, what will happen in this situation?
You can transfer your balance from one card to another. Terms and conditions may vary from one card company to another. It is better to talk to a customer care representative for your card to help you come up with a solution.

5. What is a virtual credit card?
It is a non-reloadable and prepaid card mostly for one time; otherwise, it works like a regular card. It is designed to protect your financial information when you shop online. Each time you make a purchase at an online store, a new number is generated. It protects you from sharing your personal card number and other personal information when you shop online.

If you have trouble getting a credit card with low interest rates, then you may have to opt for a credit card with a slightly higher interest rate. If you have poor credit or no credit, some banks will issue you a secured credit card, wherein a deposit in your saving account will serve as a guarantee against your credit limit.

Secured credit cards are often the most excellent alternative for people who have a blemished payment history or bankruptcy in their past. Make sure you select a credit card that pays you interest on your deposit. If, on the other hand, you have very good credit score and would like a higher limit, you can opt for a Gold or Platinum card at the same interest rates with little or no annual fee.

You may be receiving offers like a new credit card with a pre-approved Credit Limit. Before applying for it, make sure you read all the terms and conditions carefully because it could carry a very high rate of interest. Otherwise, by accepting the offer you may agree to transfer the entire balance of your other credit card to the new high interest account. You could end up paying extra interest without realizing what you have agreed to do. You should thoroughly examine the whole list of terms and conditions of the credit card before you sign so that you don’t fall into this trap.

According to the Federal Truth in Lending Acts, credit card companies must provide certain pieces of information. This information is listed below, and by familiarizing yourself with it, these facts will help you evaluate Credit Cards with one another.

• Finance charges in dollars and as an annual percentage rate (APR)
• Credit issuer or company giving the credit limit.
• Size of the credit line
• Duration of the grace period if applicable, prior to payments which must be made
• Minimum fee required
• Annual fee, if applicable
• Fees for credit insurance (if any)

Types of Credit Cards

Mainly there are three types of Credit Cards:

• General credit cards, such as MasterCard, Visa, and Discover cards.
• Travel and entertainment cards such as Diners Club and American Express.
• Merchant cards which are usually used in one chain of stores.

Some credit cards are associated with certain organizations, such as universities, labor unions, professional groups, charitable groups, etc. These are called affinity cards, and they generally carry the MasterCard or Visa logo. The main difference is that the designated organization is paid a small percentage of all transactions.

Reward cards give you some rewards like cash back and incentives when you use your card. Frequent flyer credit cards, for example, offer free air miles plus reward points each time you use these cards. However, they usually have a higher interest rate, so it might not be a good idea to choose these cards if you don’t pay off your balance in full each month.

The right credit card for you is the one that is accepted everywhere you shop and charges you the least amount of money for the services you utilize. Nearly any U.S. business or organization that accepts MasterCard also takes Visa, and vice versa. To that end, it does not matter whether you choose a Visa card or a MasterCard, because you will be able to use both at the same places.

Visit Us our Credit Card Ratings section for more such tips about Credit Card.

Did you ever think about how your Credit Card works, how a piece of thin plastic makes you able to purchase big costly things and services without any worries of carrying cash and that too at so much of convenience. It means a lot to a great number of people around the globe. Majority of United States Citizens have at least one credit card and usually more than four or five.

These cards also work as your source of Identification, for example if you want to rent a car then you do require a major credit card. Used intelligently this card can give ease, comfort and allows you to make purchases with almost a month to pay for them prior to finance charges put the boot in. This sounds excellent but in reality many card consumers don’t take this benefit as they do carry a balance from month to month and some times even from year to year. Carrying a balance on your credit card may cost you a whooping 24 percent of charge. Most of the people find it very hard to resist themselves from using this piece of plastic.

We will discuss History and technical things behind a Credit Card. Starting from the scratch a credit card is thin piece of plastic, typically 3-1/8 inches by 2-1/8 inches in size, which contains ID information like a signature or photo, and authorizes the individual printed on it to charge for purchase or services to his account. Today, the information on the card can be read and used on ATMs, store readers and Internet. Users pay out their bills on a monthly or yearly basis plus the annual fees. The earliest Credit Card that could be used on variety of stores and businesses was introduced by Diners Club in 1950 and after eight years American Express came with its universal credit card called “Don’t Leave Home without it!” and then came the Bank of America in 1959 which was renamed as Visa later on. Master Card followed them with the name of Master Charge earlier.

Now the Credit Card Number system, although the associated cards like departmental card have their own numbering system but ANSI standard is used by most of the national card systems. A total of 16 digits are there on front of Cards. The first digit in Credit Card Number signifies the system:

3 – American Express and Diners Cub

4 – Visa

5 – Master Card

6Discover Card

Usually, digits from two to six stands for Bank Number, digits from seven to fourteen stands for Account Number and last digit is a check digit. This system varies from bank to bank.

When a purchase is completed, the credit card consumer agrees to pay the card issuer. The cardholder indicates his/her approval to pay, by signing a receipt with a record of the card details and signifying the amount to be paid or by entering a Personal identification number (PIN). Also, many merchants now accept verbal authorizations via telephone and electronic authorization using the Internet, known as a ‘Card/Cardholder Not Present’ (CNP) transaction.

Electronic authentication systems allow merchants to confirm that the card is valid and the credit card customer has enough credit to cover the purchase, allowing the verification to happen at time of purchase. The authentication is performed using a credit card payment terminal or Point of Sale (POS) system with a communications link to the merchant’s acquiring bank. Data from the card is obtained from a magnetic stripe or chip on the card.

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