Chapter 11 Working with Credit Card

1. Chapter 11Working with Credit Card • Methods of Processing Credit Cards • Preparing for Cyber Cash • Authoring a Credit card Transaction

2. Methods of Processing Credit Cards • Three Different Types: • Offsite Payment Processors • Payment Terminal Solutions • Component Based Solutions

3. 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.

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

5. 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

6. 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.

7. 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.

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

9. Component Based Solution • Provides greatest flexibility over processing credit cards. • Can write ASP scripts for authorize, capture & refund credit card information. • Ex: Cybercash & VeriFone’s vPos software.

10. 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.

11. 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.

12. 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 merchant’s account.

13. 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.

14. 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

15. 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.

16. 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

17. 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.

18. 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.

19. 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.

20. 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.

21. Authorizing a credit card Transaction: • Two Steps involved in transferring money from customer’s 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.

22. 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. It’s a standard WinSock component.

23. Settling Card Transactions • After authorizing credit card transaction, you must capture and settle the transaction for the money to be transferred from the customer’s account to your merchant account. • Depends on arrangement made with your acquiring financial institute.

24. 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.