Online credit card processing

Thanks to credit cards, one can enjoy the best that life has to offer. Be it an amazing deal for which you couldnot visit the store for a purchase or you can't queue up to book tickets for your dream holiday. Using credit cards online comes as an easy way to get these things done in a jiffy.While it is easy to use credit cards, most customers find it difficult to pay them off. However, Credit cards have proved to be the best companions to help you manage finance, as the need arises. And with people getting more net savvy, online transactions have become a phenomenon. Internet has also made it easier for getting credit cards online. However some people are wary in applying online.

Keeping pace with the e-enabled lifestyle, the credit card industry is burgeoning at a pace parallel to the technological advancements. Today, the standard credit cards include MasterCard, Visa, American Express, HSBC, Diners Club and Citibank among others.

Different issuing banks have their own websites। Application forms are available on these sites. One has to just make sure that the filled in application form is secured. There is always a threat of scammers on the net. Hence one should be alert and careful.

How do I apply online

Firstly, choose a credit card issuer. There are various web sites that provide you information on credit card issuers.

Applications can be processed faster if you have an email address, driver's license and details related to income. In case of any existing loans, you must furnish the details. Most banks ask for details related to your present credit card, current balances and credit limits.

The applicant must be of 18 years and above in age. Few minutes after the submission of the application form, you shall get a confirmation. If you have a good credit rating, the application will be approved soon. It takes around three to five days to get your credit card.

With the technology getting better in simplifying lives, credit card companies are coming forth with innovative measures to provide qualitative service to their customers. For instance, the E Credit Card by American Express offers a powerful set of e-enabled features including automatic payment through a direct debit, access to card services and monthly statements on the net anywhere, anytime.

How does an online credit card transaction work

Once the credit card details are captured, the transaction must be authorized by the bank.If the card is valid with sufficient funds available, the bank reserves the funds and returns an "authorization code". This is an assurance to the merchant that the bank will reserve the stipulated amount of money on the cardholders account for a period of time. The merchant processes the settlement transaction, after which the money is transferred from the clients to the merchants account. The credit card processing depend on two important components, to handle payments:

• Internet Merchant Accounts: It is a separate bank account for the merchant, approved and capable of receiving credit card payments from credit card providers।
• The Payment Gateway Account: The payment gateway handles the verification and transfer requests।
  

Online shopping carts have configuration settings that allow a number of gateway choices. An internet merchant selects the shopping cart and web site hosting company and then orders the merchant account based on the gateways that are available in the shopping cart.

In case of a fraudulent transaction, the merchant has to bear the risk. So it gets imperative to ensure that the identity of the card holder is right.

Advanced cards such as Verified by Visa and MasterCard Securecode come in handy in safer transactions. The consumer is required to enter a password during a transaction to validate his identity.

What is required in a credit card transaction

Credit card transactions require the holder to provide details such as:

• Amount of purchase
• Sixteen digit credit card number
• Exact name as it appears on the credit card
• Expiry date of the credit card
• Type of card (for eg: MasterCard or Visa)
• Three digit card verification code (This is printed at the back of the card in continuation of card number)

Using credit cards online for booking tickets or shopping can be fun but beware...it can also mean more credit card numbers to steal. Extra caution becomes inevitable. As these tiny plastic cards get more popular, internet thieves get a chance to steal your credit cards details and thus misuse them.

Here's how you have a safer online transaction:

Go to an established vendor. Some auction players such as EBay provide a safe buying experience. Check out for large auction houses on the web.

Always go for a secure web browser. Check if the website is secure. If the credit card information page for a site begins with http:// and not https://, it s not secure. The s in https signifies a secure protocol is being used.

Monitor your monthly statements and check every small transaction.

Open and respond to only those mails coming from familiar people.

After buying, save records relating to the transaction.

Notify your financial institution in case of a suspicious email activity.

If a credit card issuer offers one-time use credit card numbers, then there is no scope for a problem in shopping online. One-time-use credit card numbers are generated by the credit card company and can be used only for a single transaction. So, even if the credit card information is intercepted by a hacker during or after the transaction, the card number doesn't serve any purpose.

All said and done, most of us wonder whether it is safe to use credit cards online.While it may never be fully possible to avoid risk, exercising caution and following the tips will certainly help in eliminating certain risks of using credit cards online.

*Credit card is a card given to a specific holder who is entitled with a credit line. A credit card holder can withdraw cash or make purchases on credit. After a specific period, the amount charged should be paid by the holder to the bank. Interest charges and annual fee charges must also be paid by the card holder.