Member Avatar for niazi

Dear fellows

I want to now how on line credit card transaction work with merchant accounts and how to implement those any one has any idea please reply me i would be alot thank full.

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  • Latest Post Latest Post by selfhelpebooks

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Quick primer for on how an online card payment actually moves money and what you need to do to accept it.

A typical card transaction: customer submits card data at checkout, a payment gateway or SDK sends an authorization request to an acquirer/processor, the request routes through the card network to the issuing bank, and an approval or decline is returned. If approved the merchant can capture the funds; later a settlement process moves cleared funds to the merchant bank account. Chargebacks and disputes can reverse funds after settlement, so dispute handling and clear records are important.

There are three common integration patterns with different tradeoffs and compliance scope: a hosted/redirect checkout where the provider hosts the payment form; a client-side tokenization flow (JS SDK) that sends card data directly to the provider and returns a token; and a full server-to-server integration where your servers handle raw card data. Hosted or tokenized options greatly reduce what your systems must secure. For details on requirements and self-assessment guidance, see PCI guidance from the standards council: PCI guidance and SAQs.

Practical implementation checklist: choose an acquirer/gateway (compare setup and per-transaction fees and refund/chargeback policies), create a sandbox/test account, implement TLS 1.2+ and strict input validation, use tokens instead of storing PANs, implement webhooks for settlement and disputes, log responses and decline codes, and test chargeback and refund workflows. If you will store or process raw card data you will need to meet the highest PCI requirements and may require an external assessor.

Building on points from the thread: pointed toward an external provider option, which is the fastest way to get started; and touched on compliance and underwriting—expect KYC/underwriting from an acquirer and different assessment requirements depending on how you integrate; confirms these services do work well in practice.

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Member Avatar for bdude

If you're just doing simple transactions, then you could look at using the PayPal API

Member Avatar for niazi

Thanks for your reply but i like to know that are we bound to use some payment gate way
cant we do it our self if not then is there any free payment gate way expecting reply pls

Member Avatar for shovels

If you want to do it your self, as far as I know, you will need an audit (anyone who comes into contact with card numbers)

These, I believe, are quarterly and cost a substantial amount.

Unless you are going to be processing 1000's of transactions you are better of with a PSP (payment Service Provider)

I personally use Protx (Approx £20 per month). This works out one of the cheapest ways to take on-line payment.

I've heard PayPal is good now, but I've never integrated it so can't comment.

Member Avatar for stymiee

There are no free payment gateways or free merchant accounts. How you actually process a credit card will vary as each payment gateway and third party processor uses a different API. No audit or anything like that needed.

And it's not true that you need to process thousands of transactions for a true merchant account to be worthwhile. There are many factors that influence which is better for a business. You need to weight your options before choosing a provider.

Member Avatar for shovels

I wasn't suggesting that a true merchant account wasn't worthwile, just that I have been informed that to process credit card numbers on your own site you have to have an audit, using a PSP you don't need to have an audit as the PSP is processing the credit card number for you.

With Protx you still need a merchant account with your bank.

Or is a 'true' merchant account different?

Member Avatar for stymiee

For a true merchant account a credit check will be done but that's not a big deal. Considering the benefits of a true merchant account over a third party processor, under most circumstances, it is usually well worth doing.

Member Avatar for selfhelpebooks

I use PayPal and it works great!

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