Transactions are processed online, in real time. While the customer waits, the system checks the credit card to be sure that it has not been reported stolen, has not expired, and is listed to the same address that the customer has given. If the card is approved, the customer and the merchant are both automatically notified that the sale has transpired. Web transactions do not gather signatures from purchasers and therefore there is a higher risk of fraud. Merchant Brokers specialize in obtaining credit card accounts for online businesses.
Brokers charge a setup fee and lease or sell the software and hardware as needed.
Expect to pay a discount rate, which is the percentage you pay for each transaction processed, as well as various other charges that differ among services. If obtaining a merchant account through a traditional bank is proving to be a problem, merchant brokers are a good alternative. Microtransactions or Micropayments Microtransactions are transactions of tiny amounts a few cents or a few dollars, typically made in order to download or access graphics, games, and information. A very new approach, telephone transactions allow the customer to purchase an item or service, and the amount will be billed to his or her telephone bill. Small and home businesses often experience difficulties qualifying for a merchant account, and Web based businesses run into even more problems.