Chapter 11 Working with Credit Card

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Chapter 11Working with Credit Card

• Methods of Processing Credit Cards
• Preparing for Cyber Cash
• Authoring a Credit card Transaction

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Methods of Processing Credit Cards

• Three Different Types
• Offsite Payment Processors
• Payment Terminal Solutions
• Component Based Solutions

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Offsite Payment Processors

• Several companies enable you to link to their Web
  site and they will process the credit card
  transaction.
• They host the payment page that prompts the
  customer to enter credit card information.
• After the customer has completed the payment
  transaction, the customer is sent back to your
  web site.

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• Advantages
• Very Easy to setup.
• Need not use SSL.
• No Need to take special precautions to maintain
  the privacy of the customers credit card
  information.
• All this is done by other web site.

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Disadvantages

• Lose control over the appearance of you payment
  page.
• Never collect credit card information directly
  from the customer.
• If something goes wrong with the offsite payment
  processor- ex web site goes down- the problem is
  out of your hands and you can do nothing about
  it. Ex iBill

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Payment Terminal Solution

• Ex www.icverify.com
• It contains an easy to use interface for
  authorizing settling credit card transactions.
• Launch the program, accept the credit card
  information and the program authorizations the
  transaction.
• It dose not work over the internet. Use the
  program with modem.
• When authorize or settle a credit card
  transaction the program connects to your
  processor over the phone line and completes the
  transaction.

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• Not recommend for real time processing.
• Suited for processing credit card transactions
  in batches.
• Database information should be converted to CSV
  files.To do this SQL Server uses Data
  Transformation Services MS Access use MS Access
  Export.

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Advantages

• Cheapest Solutions for processing Credit Cards.
• Use normal phone line not internet.
• Bank charges much lower fees.

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Component Based Solution

• Provides greatest flexibility over processing
  credit cards.
• Can write ASP scripts for authorize, capture
  refund credit card information.
• Ex Cybercash VeriFones vPos software.

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Advantage

• Advantages
• Have complete control over credit card
  transaction.
• The customer need not leave you web site.
• Can be processed real time over internet.
• Disadvantages
• More Expensive as they require the bank to setup
  a custom Internet Gateway.
• Have to write custom scripts which is time
  consuming.

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Preparing for Cybercash

• Three requirements of Cybercash
• Open credit card merchant account.
• Register as a merchant at the Cybercash web site.
• Download and install the necessary software for
  communicating with Cybercash.

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Opening a Credit Card Merchant Account

• Must open credit card merchant account with an
  acquiring financial institution.
• Acquiring financial institutions will be banks.
• Acquiring financial institutions work with the
  third party processor to process credit card
  transactions and deposit money into merchants
  account.

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• Before selecting check for bank supporting
  CyberCash.
• Banks may charge any of these fees
• Application fee, Setup fee, Transaction fee,
  Monthly minimum fee.
• A discount rate
• Other than Bank fees the Cybercash charges
  additional setup, transaction fees over and above
  the bank fees.

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Registering at Cybrcash

• Cybercash will lead you through the registration
  process in a series of HTML Forms.
• To register go to http//amps.cybercash.com/
• Asked for following information
• The legal name of our business
• Your doing business AS name
• Your Business Address.
• Contact information, including phone number
  email address

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• After registering, you will be given CyberCash ID
  (CCID), hash secret merchant key.
• This information is needed when you install the
  CyberCash software.
• Download the CyberCash Merchant Connection
  Kit(MCK) and the Cybercash documentation..
• The MCK contains the components you need to
  communicate with CyberCash to process credit card
  transactions.
• Contains sample scripts which are written in PERL
  not in ASP. MCK Version is 3.2.0.4.

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• Its not yet Live. All transactions are performed
  in test mode.
• To go live, log into the cybercash Merchant
  Control Panel and select the Going live option.
• Merchant Control Panel is accessed at the URL
• https//amps.cybercash.com

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Installing CyberCash Software

• After downloading MCK, you need to install it.
• Need to run two installation program
• Install MCK itself.
• Execute the build merchant installation program
  from start, programs, CyberCash Merchant
  Connection Kit.

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Enter Follwing information to complete the
installation program

• Fully qualified domain name of your computer.
• Your CyberCash ID (CCID) and hash secret.
• Name of your store customer service phone
  number.
• Your Merchant Key
• URL of your secure server.

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• Must specify the computer language you want to
  use with cybercash. Choice is C PERL or ASP.
• Installation program Adds two virtual directories
  to your web site. One is mck-shared and other is
  given the same name as your store.
• They contain the configuration files that
  cybercash needs to process credit card
  transaction and some sample ASP scripts.
• Installs most important file named merchant_conf
  which configuration information specific to your
  CyberCash account. It is normal text file viewed
  on Notepad.

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• Installs two important components the
  MessageBlock and the Socket components. It is
  used in ASP script to communicate with the
  Cybercash service.
• After installing, test your installation by
  launching web browser and open the following URL
• https//ww.yourdomain.com/yourstorename/mck-htdocs
  /test-mck.html.
• Will open a test page that enables to test
  various functions of cybercash.

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Authorizing a credit card Transaction

• Two Steps involved in transferring money from
  customers credit card account to merchant
  account
• Authorize
• Capture
• To authorize a credit card transaction, you the
  cybercash MessageBlock and Socket components.
• These are ActiveX Component, that can be used in
  ASP in the same way as you use Ad Rotator
  Browser Capabilities Components.

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• The MessageBlock component represents a message
  that you either send or receive from the
  cybercash service.
• Before authorizing a transaction, you load the
  MessageBlock component with list of values like
  customer credit card number etc. to the
  MessageBlock before you send it.
• The Socket Component is responsible for sending
  the message to the CyberCash service. Its a
  standard WinSock component.

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Settling Card Transactions

• After authorizing credit card transaction, you
  must capture and settle the transaction for the
  money to be transferred from the customers
  account to your merchant account.
• Depends on arrangement made with your acquiring
  financial institute.

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Three different processing models for capturing
and settling transaction

• AuthCapture transactions are automatically
  captured, when they are authorized.
• Auth/PostAuthCapture Capturing is done as
  separate operation. Is intended for use when a
  product/service is not immediately delivered to
  the customer.
• Terminalcapturing - includes two additional
  steps
• Must be marked to be included in a batch.
• Batch must be sent to the processor for
  settlement.