Know the Language
While learning about credit card processing, you may come across a myriad of terms that can confuse you. Every industry has its own set of jargon, and you shouldn’t feel frazzled just because you don’t know what something means. The best way to get answers is to ask questions whenever you’re confused. Your vendor is there to help you, and you should get your money’s worth and ask when you have confusion. Here’s a few terms to help you on your way to better understanding credit card processing lingo.
Merchant Accounts
These types of accounts act like banks for when a customer makes a transactional purchase on your site. The funds that they use — through their credit or debit card purchase — are sent to merchant accounts, which act as a line of credit of sorts between you, the acquiring bank, and the issuing bank. The acquiring bank retrieves the funds from the issuing bank (where the customers’ funds originate), and then transfer those funds to you.
eCommerce and ASPs
Short for “electronic commerce,” eCommerce is the broad, general term for the marketplace of the web. When you refer specifically to your own eCommerce, you’re talking about everything that has to do with your business on the internet. An application service provider (ASP) is the business that provides specific services to webmasters over their network. They can provide functional (help with applications), vertical (delivering plans specifically for certain industries), enterprise (a breadth of industry solutions), or local (small businesses) solutions for companies that are dealing with credit card transactions.
SSL Certificate
The SSL (secure socket layer) certificate ensures that your customers’ information stays secure while they handle transactions on your site. The SSL is an encryption that’s placed within the coding of the transaction page. It allows customers to send that information free from fear of hackers. Essentially, it turns all of their vital information — credit card numbers, names, addresses, and so forth — into an indecipherable code that cannot be figured out without a key.
eCommerce Web Hosting
Essentially, eCommerce web hosting is the service provided to your business that puts your website on the net for all to see. The web host allows you to design and personalize your site, giving you the tools to make exceptional web pages that will dazzle your customers. Not unlike regular web hosts, eCommerce web hosts typically have one extra feature: they help their clients in placing add-ons to their sites, connecting them with customers so that transactions can transpire.
More Terms, But Fret Not!
There are many other terms and technical jargon when it comes to credit card processing. The entire process of setting up credit card transactions on your site can seem daunting at first glance. But you shouldn’t worry: the entire process is relatively pain free, and easy to maneuver through if you select the right company. If you do your research and choose according to your needs, you should receive the utmost care and aid from your credit card processors.
