|
|
 |
![*]()
Manual and real-time payment
![*]() Your choice of manual or
real-time processing totally depends on the number of transactions
that occur on your site. Manual payment processing is viable
when the volume of transactions expected is low. Manual
processing means the order is received with the credit card
number through a phone call, fax, or online form and processed
manually, either by contacting the payment processing company
to verify the validity of the credit card or by swiping
the card at point of sale terminal.
It is not only less expensive than real-time processing
but also prevents fraud occurrence, as you have more control
over the processing procedure. The major disadvantage is
the amount of time taken to manually process orders. Any
significant increase in the transactions number will make
manual processing too extensive and inconvenient. Though
it is time consuming, it is relatively risk free.
If you choose batch payment processing, you essentially
have two options that enable you to manually process orders.
One, you can purchase software that allows you to transact
your orders manually. The software is housed on your computer’s
hard drive and is connected to your bank through a modem
and telephone connection. Second, you can buy a point of
sale terminal to key in credit card numbers as they come
in.
Leasing a terminal is an option, but it is not always the
cheapest route. For example, perhaps you want to purchase
a POS terminal that would cost you $400 to buy. To lease
the same terminal using a 10 percent interest rate for three
years you would pay $520. So, in fact you are paying $120
more than if you had purchased the terminal. And, in most
cases, the original price is marked-up to start. Therefore,
it is better to shop around and look for the best purchase
deal.
On the other hand, real-time payment processing is the process
where the credit card is automatically processed when the
customer submits an order. Once the credit card is verified
and approved, the customer receives immediate notification
that the order is accepted and the funds are transferred
from the customer's bank account to the merchant's account.
Real-time processing is very quick and better for large
volume sales and for products that are sent electronically.
Time is saved in processing the order, but it is more expensive
to have and requires continuous monitoring to ensure there
is no downtime.
Keep above facts in mind while choosing between batch (manual)
payment processing or real-time payment processing.
|
|
|
