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In order to enable your Web site store to offer real-time credit card processing, you will need both a merchant account and a payment processor.

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Step (1) – Your client has browsed through the shopping cart at your online Web store, and is now ready to check out and purchase your product(s). The client enters his or her credit card number into your secure shopping cart. The credit card number is then transferred online to the payment processor.

Step (2) – The payment processor takes the credit card information and transfers it to the cardholder’s credit card bank for approval.

Step (3) – The credit card bank either approves or declines the amount charged on the cardholder’s credit card, and directly notifies the payment processor. If the credit card is approved, the dollar amount is charged to your customer’s credit card.

Step (4) – The payment processor sends the message of approval or decline back to your Web site store. Both you and the client can see if the credit card charge is approved or declined.

Step (5) – If the credit card purchase is approved, the amount of the charge is deposited into your merchant account.

The entire process takes only a matter of seconds.

All merchants, from the smallest on-line storefront to the largest "brick and mortar" retailer, who accept and process credit cards need a merchant account. A merchant account enables merchants to accept and clear credit card transactions. Merchant accounts are available from most local and national financial institutions.

In the case of your Web site store, several options exist.

If your business already has a merchant account, you can use your existing offline credit card processing terminal to handle Internet transactions. You can receive your customer’s credit card numbers by phone or e-mail and manually enter them into your terminal in your office.
If your business already has a merchant account, and you want to process credit cards online in real-time, then you need to make sure that your merchant account is with an Internet-enabled merchant. Not all banks that offer merchant accounts offer "online" merchant accounts. Check with your current bank to see if they offer an online ability. If they do not, we have relationships with some of the top providers in the business and can help you apply for online merchant accounts.
If you currently do not have a merchant account, HostGlobe has established relationships with some of the most widely-known and respected names in the online banking business. Simply contact one of our sales representatives, and we can assist you in applying for an online merchant account.

Merchant account fees are typically 2.5% to 5% of sales, depending on the nature of your business and the bank's review of your application documents. Also, there is usually a monthly minimum charge of around $30.

HostGlobe offers you the ability to apply for a merchant account that already includes the payment processor.

The payment processor is the link between your Web site store and your merchant account. When an online order is placed, your Web site generates an authorization request, which is then sent to the payment processor. If your customer is purchasing hard goods that must be physically shipped, such as a book or clothes, then the order is saved by the processor for later settlement. Once you ship the goods to your customer, the payment processor will then settle the order, and the financial transaction is completed. If instead, your customer has purchased downloadable media from you, such as software or a site membership, then the order will be authorized by the payment processor and settled in real-time.

Payment processors typically charge a monthly "leased line" fee that pays for fast and direct access to their processing lines. The payment processor fee will typically be in the $40- to $60-per-month range. The ShopSite® shopping cart software is already enabled with links to the top payment processors in the industry, including AuthorizeNet, CyberCash, and Signio.