Authentication and AVS insure that the billing address in the transaction matches that of the credit card holder. They also make sure that the card has not expired and reserve the funds until the merchant can ship the products and settle the transaction. While many ISPs are able to provide businesses with a secure server, most do not help set up an online store. A merchant account allows a bank to process credit card orders that a business receives from its customers. These days, the process of applying for a merchant account is similar to that of seeking authorization for a personal loan.
Fees vary widely, so it pays to shop around.
All banks charge a usage fee, called a discount rate, that typically ranges from 2.3 percent to 3.5 percent of each transaction. Also, some banks charge extra percentage points and per-transaction fees for online sales. Make sure to ask what all the fees are before applying for your account.