Internet Payment Processing

Online payment processing refers to the purchase of goods and services over theInternet typically using a credit card. The financial transaction is processedelectronically in “real time.” The standard process to implement real-time paymentprocessing is: (1) to obtain an online merchant account for a particular credit card froma bank; (2) to select a payment gateway that will process the credit card information;and (3) to integrate your website with the payment gateway.

Throughout this document,the terms “payment processor” and “payment gateway” will be used interchangeably,though payment processors often imply a direct relationship with a bank or financialinstitution.There are numerous variations on this model, such as a single company providing allfinancial services.

As with other aspects of business, we suggest leveraging yourexisting relationships first. If you have dealt with a particular bank for years, approachthem with your online requirements, as they may offer attractive rates or streamline thestartup process. Just keep in mind that their way is not the only way, and that you maywant to look into some alternatives

Source : www.e-bc.ca