How Electronic Credit Card Processing Works


Almost every business in today’s world needs credit card processing services, but few may be aware that electronic credit card payment processing is a different service. To find out if your company needs it, read more about what this type of payment processing is and how it works.

What Is Electronic Credit Card Processing?
Electronic credit card transactions are also referred to as card-not-present transactions. This is because the physical card is not needed to process the payment, unlike a card-present transaction in which the card would be swiped by a point of sale terminal. To process a card payment without the card, you do still need important information from the card and the cardholder. That information includes the number, the expiration date, the security code, and verification information, such as the cardholder’s address. In addition, since you are not using a POS terminal to send that information to your merchant account provider, you need another way get credit cards authorized and processed.

Virtual Terminals and Payment Gateways
Because you will be taking in and sending most credit card payment information online, what you need is known as a virtual terminal. A virtual terminal is simply computer software that sends credit card information to the merchant account provider for authorization and processing so you can get paid. For those taking payments over the internet, you need a payment gateway that allows customers to enter their own information. You can usually get this software through your merchant account provider.

Why Does Your Business Need It?
If you already own a brick and mortar store, you probably already have credit card processing. But to really take your business to the next level, you need to have a presence on the internet and you need to be able to sell your products on the internet. To get paid for those internet sales, you need electronic credit card processing. Give your business the opportunity to expand and the chance for your sales to increase by launching the internet branch of your store.

Where to Get It
While you can turn to your current merchant account provider for electronic processing, you may want to explore your options first. Pricing for electronic credit card payment processing is usually different and your current provider may not always have the best rates. Once you decide on a merchant account provider, you can start selling over the internet and be able to process all credit card payments.