Lately, however, a number of service bureaus, such as First Data Merchant Services, have made it easier to open merchant accounts. And leading provider Authorize. When a customer pays for something via credit card, there are two different stages in each transaction, authorization and capture. Authorization refers to checking the account number to see if it is still valid, has sufficient credit, and hasn't been reported lost or stolen. The address of the cardholder may be matched against that listed in the account, also to deter fraudulent use.
Capture refers to approval and posting of the transaction, and shipment of the goods.
There have been many missteps in the short history of Internet payment technologies. The biggest issue has been the acceptance of a single standard that bridges both the banking and the Internet worlds. ECML is brand new, with its first specification released in the summer of 1999. Again, IBM and various large banks are behind ECML, and we'll see where it goes. If it is going to take hold, it needs to do so in the next 12 to 18 months.