New Page 1

The consumer moves through the internet to the merchant's web site. From there, he decides that he wants to purchase something, so he is moved to the online transaction server, where all of the information he gives is encrypted. Once he has placed his order, the information moves through a private gateway to a Processing Network, where the issuing and acquiring banks complete or deny the transaction. This generally takes place in no more than 5-7 seconds.

There are many different payment systems available to accommodate the varied processing needs of merchants, from those who have a few orders a day to those who process thousands of transactions daily. With the addition of Secure Socket Layer technology, E-Commerce is also a very safe way to complete transactions

There are several basic steps involved in becoming Commerce Enabled.

Getting an Internet Merchant Bank Account
Web Hosting
Obtaining a Digital Certificate
Finding a Provider of Online Transactions
Creating or Purchasing a Shopping Cart Software
Conclusion

Getting an Internet Merchant Bank Account

In order to be able to accept credit cards over the internet, you must apply to your bank for an Internet Merchant Bank Account. This can be relatively easy or somewhat difficult, depending on which country you live in and what bank you are with.

U.S.A.:

In the US, this is a fairly simple procedure. Many banks offer Internet Merchant Accounts, and most Online Transaction Providers will support them. See your bank for details.

International:

Since the vast majority of Online Transaction Providers are located in the US and are restricted in their ability to interact with banks outside their own country, international merchants have very little choice. An international merchant has to find a way to get a US merchant account, embark on the equally difficult task of finding a local Online Transaction Provider, or utilise one of the few companies that services the international market. Also, many banks outside the US have very restrictive policies regarding internet accounts. Luckily, the situation is improving, and most Online Transaction Providers will help you with this if you get in touch with them.

In the ratings section, I have included information on which providers give international service.

Here are some additional issues to keep in mind when you apply for a Merchant Bank Account:
A US merchant account can take up to a month to come through.
If you already have a merchant bank account, you will probably also need to upgrade it to an Internet account.
Ensure that your bank accepts Internet merchant accounts and has credit card processors that can connect to FDC, Paymentech or CyberCash.

Your account must be able to handle Card Not Present transactions

Web Hosting

Web hosting is a very important step in this process, as this is how you gain a presence on the internet in the first place.

It is important that the web hosting company is capable of providing you with the level of service that you need to maintain your Web Store. A few things to look for are:

Good uptime
Good technical support
Fast connection to the Net
Staff that is knowledgable about E-Commerce
Compatibility with major E-Commerce providers

It is always good to spend some time when choosing a web hosting company, as there are many 'fly-by-night' businesses out there. For the money you're spending, make sure that the company is reputable

Obtaining a Digital Certificate

A digital certificate, also known as a SSL Server Certificate, enables SSL (Secure Socket Layer encryption) on the web server. SSL protects communications so you can take credit card orders securely and ensure that hackers cannot eavesdrop on you. Any E-Commerce company will require you to have SSL before you can use their services.

Thankfully, for most people obtaining a digital certificate is not a problem. For a minimal fee, one can usually use the certificate owned by the web hosting company where your page resides.

If you are a larger company, however, you may want to get your own digital certificate. A certificate costs about $125.00 and can be obtained from Thawte or Verisign.

Finding a Provider of Online Transactions

Before you start looking for a provider, you should stop for a moment and consider what exactly you need. How many transactions do you expect to be completing in a month? How many products do you have to put on your web site? How complex does the software need to be? How much are you willing to spend?

There are a lot of online transaction providers out there, and they all have varying packages. Deciding on a provider's package that fits your needs is perhaps the most important aspect in creating an E-Commerce website.

The Directory page provides a good cross section of the companies out there. It is a good idea to go through a few of them and compare their prices and services. For a quick breakdown of the most popular packages these companies provide, visit the Summary section.

Shopping Cart Software

Shopping cart software is an operating system that can be used to allow people to purchase your items, keep track of your accounts, and tie together all of the aspects of your E-Commerce site into one cohesive whole.

While there are many other types of software that you can use in it's place, such as catalog software or a flat order form, shopping cart software is the most popular and the most widely known.

Many Online Transaction Providers will have shopping cart software that comes with their service, but it can often be very expensive, so be warned. If you cannot afford to spend at least a couple of hundred dollars on this software, you should be looking for a package that offers it as a rental included in the monthly service charge, or one that offers a simple flat order form

Conclusion

E-Commerce can be a very rewarding venture, but it should not be undertaken lightly. There is a lot of information to absorb. Here are some additional tips on creating a successful Online Store:

If you know nothing about web design, it is probably a good idea to hire a designer.
Marketing your site is very important on the web. Here are some useful tips:
Submit your site to as many search engines as possible.
Try finding web sites with similar themes and make deals to create reciprocal links.
Create an advertising banner and purchase space from a popular website to display it.
Put your URL in the signature file of your email and the header of all business corespondence.
Word of mouth is very powerful on the Net; tell all of your friends about your page.
Avoid spamming - it is a sure way to get a very bad reputation.
Investigate the web sites that are possible rivals and formulate a strategy for competing against them.
If you anticipate a lot of growth in the amount of orders coming through your site, figure out how you are going to cope with the increased load before you get swamped.

Now that you know the basics, you should be able to make some informed decisions about how to proceed. Remember that you can ask for further advise from the company that you decide to employ.

E-COMMERCE

This is How E-Commerce Works