On Line Payment Processing
To setup on-line payment processing you need to create a 'Merchant Account'. This 'Merchant Account' can be setup through your financial institution or through a Credit Card Processing Service.

You will be charged a setup fee, a per transaction processing fee percent and possible monthly maintenance fees.

An example of CSI (Card Services International)

  • $395 Setup Fee
  • 2.35% of order (including taxes & shipping) on Visa and MC + 30 cents a transaction
  • 3.75% + 30 cent on AmEx.
  • Customer Service Fee $10
  • Monthly Gateway Fee $15

This is one area you definitely want to shop around.   Your bank may charge additional fees..and your bank may be capable of setting up this account at a competitive or better rate.

A new trend has been for ISPs to offer a 'Merchant Account' for you. They are receiving a 'kickback' fee from the credit card processing companies and your setup fee can be as much as $450 verses the $395.

Once you have a Merchant Account setup you will need to setup the framework to pass the information to the account.


When a customer places an order through their computer and browser software the ordering information is passed to the web server


Web Server
The web server e-commerce solution will typically store the ordering information on the web server, for order processing.  The financial ordering information will be passed to the 'On-Line Payment Processing' Server Network.

Depending on the e-commerce solution you are using, this may need to be coded in CGI, Perl, ASP or the software may integrate this connection. 


Processing Server Network
Your 'Merchant Account' information is passed to the Processing Network Server via the Web Server.

Most Processing Networks require an SSL transmission.

Depending on the type of 'goods' you are selling, and how you have setup your account you may have to login to their server to batch process the order or this can be automatically transmitted.

Two laws that apply to 'goods' are:

  • Hard goods - Credit Card cannot be charged until the item is shipped
  • Soft goods - Electronic software can be charged automatically

The Processing Network may verify that the credit card is valid before processing the order any further.


Credit Card Processing
The information is passed to a Credit Card Processing institution.   Once the Credit Card has been processed the funds are transferred to your bank.


Your Bank
Accepts the funds and places them into your account.

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