21 August 2010
How does online/store retailers receive money when paid from a credit card?
Posted by admin under: Credit .
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3 Comments so far...
Dr who Says:
22 August 2010 at 7:57 pm.
The bank that the cards are set up for, visa, master card direct deposit to the stores account.
blu_raven_13 Says:
24 August 2010 at 10:27 pm.
same way a retail store would. They have an account associated to the store that the $$$ are deposited in when you pay.
doumbek Says:
25 August 2010 at 5:18 am.
There are many WRONG ways.
The *right* way is that when you make a payment via CC or debit card, the information is encrypted before it’s sent to the server. That information is then passed to a PCI compliant gateway which is a bonded service responsible for connecting with the credit card account to query for availability of funds. If the transaction is accepted, an AUTH transaction is processed.
An AUTH is an authorization and “reservation” for the funds. Once the item is shipped, a batch is performed that actually debits the account and the funds are transferred to the retailer’s bank account.
In the above I mention PCI compliance – this is a 15 step auditing system in which all of the methods of storing credit card information and the network systems on which they are stored are audited by the credit card companies for security. This is why you pass this info to the gateway, PCI compliance is out of the means of most merchants and this is the responsibility of the gateway provider.
A respectable retailer will never, ever ever store CC info on their website. This is, however, how many do it – beware of retailers that do not prominently display logos or information about their methods of processing cc info. Many of them store the CC info right on their web server or worse yet, have it EMAILED to them! Neither of these are secure and allow hackers to steal credit card numbers.
That’s the “short” story.