Ebook Credit Card Processing Strategies
Selecting the right credit card payment solution is one of the most important decisions Internet merchants make when building out the back office infrastructure of their online business. Critical decision factors abound, such as implementation lead time, shopping cart integration, and scalability to name only a few.
From a functional perspective, the ideal credit card payment solution is the one that most succinctly accommodates the merchant’s business model. Selling physical goods, digital products, and/or online information all impact credit card payment methodology and requirements. Performance attributes are also key: whenever a customer clicks on the merchant’s buy button, that credit card purchase must transact regardless of the merchant’s order volume, general Internet traffic, etc.
With a self managed credit card payment system, merchants can deploy a solution that may provide a high degree of functional control and is integrated ith other back-office applications. These benefits are diminished by the significant investment in web development resources needed to build and maintain the system resources that might be better utilized enhancing the shopping experience provided by the merchant’s web store.
Alternatively, outsourced solutions can present certain benefits and drawbacks. Merchants appreciate the relatively low investment and rapid deployment of an outsourced solution, but may feel constrained by the limited flexibility and lack of merchant control experienced with some outsourced credit card payment services.
Ultimately, the best credit card payment strategy couples the functionality and performance of a self managed solution with the economic benefits and rapid deployment of an outsourced service. A strategy that provides all the benefits of a multimillion dollar back office infrastructure, without the downside resource drain. This strategy allows merchants to focus internal resources on marketing, merchandising, and integration of business processes elements that truly differentiate the merchant’s business.
Throughout the world, for hundreds of Internet merchants and the banks that provide their merchant accounts, CyberSource Credit Card Services provide the optimal solution. By outsourcing online credit card payment functions to CyberSource, merchants can achieve all the financial advantages of outsourcing without sacrificing the security and tight control of an internally developed and maintained solution.
Contents
Executive Summary
Internet Payment Processing Overview
- Entities and Operations Involved in Credit Card Processing
Authorization and Settlement
Choosing a Payment Solution Strategy
- Business Considerations
Overview of Outsourced and Self-Managed Payment Applications
Comparison of Business Considerations
Performance Comparisons
Functional Comparisons
Evaluating Outsourced Payment Solutions
- CyberSource Credit Card Services vs. Other Outsourced Solutions
Evaluating CyberSource Based on Top Factors in Vendor Selection
CyberSource Security Practices
Conclusion
Appendix A: Glossary
Appendix B: The Outsourcing Institute’s Annual Survey
of Outsourcing End-Users
Appendix C: How CyberSource Credit Card Services Work
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