Many websites are created to provide a channel to sell a product or a service. This article discusses some of the issues and options available to make web purchases, safe, affordable and convenient for your customers.
We buy things with Cash, checks and credit cards. For websites, it is easiest to receive credit card payments. It is also possible to receive checks electronically. A second check alternative, for those customers who are uncomfortable with providing credit card information over the internet, is to create an invoice that is mailed to the customer with a request that he return a check by mail.
Skill and comfort level of website visitors is extremely varied. Because you can't be there to talk directly with each customer, it is extremely important to create a payment system that is fullproof. It must collect all of the information you need to process the transaction (Name, address, phone, credit card, product quantity and description). It must let the buyer change information that may have been entered incorrectly. It should not burden the buyer with extra steps that might discourage the buyer from completing the purchase.
In a physical storefront, the buyer provides you with a real credit card that you can examine to determine if it is the rightful property of the buyer. The merchant is connected to a credit card processing service which validates the credit card. After reading the number, and checking the identity of the buyer, you return the card to the buyer. Both parties feel safe. You know the card is valid, the buyer knows that his credit card number is protected.
On the web, its not that simple.
First, the buyer needs to type the card number into a form on your web page. This information is then sent from the buyer's computer to your website host computer over the internet. Thieves and fraud artists can use a variety of techniques to try to grab the credit card information as it travels from computer to computer over the internet. There is a way to encrypt this information by using what is called a secure internet protocol. If you want to be safe, your webpage that receives the credit card information must use this secure protocol.
Second, you need to keep the credit card information secure once you receive it. This means that the database your website uses to store information must have restricted access. You must feel secure that your web hosting company will not have any way to access this information. Your customer must feel confident that you have taken care of these important issues.
You must have a means of checking whether the card number you have accepted is legitimate and is being used by the owner of the card. In a physical storefront, this service is provided by the credit card processor.
Shopping carts which connect to credit card processing services
Paypal
Paypal is a company that first gained prominence by providing a payment service for buyers and sellers on the famous EBay site. In fact, Paypal became so well trusted that EBay, after first trying to build their own credit card transaction processing system, purchased Paypal.