Welcome to WebmasterWorld Guest from 54.234.114.182

Forum Moderators: buckworks

Message Too Old, No Replies

What does one need to become a CC Processor?

     
1:58 pm on Jul 21, 2005 (gmt 0)

New User

10+ Year Member

joined:Jan 19, 2004
posts:28
votes: 0


If you can give me a rough idea about the main steps.

The most unclear question to me is how can a CCProcessor make card not present transactions without using external gateway. For example: 2CO - how do they make transactions? Have they set up their own relations with Visa, Mastercard, etc. or they use one of the gateways like authorize.net?
Again, please, give me the basic steps for creating a CC processor who can offer transactions to website sellers.
Here there is no local company that can offer CC processing and I am really interested in TRYING to create one.

2:05 pm on July 21, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:Feb 28, 2004
posts:1786
votes: 0


These are two different things - a merchant account processor who issues merchant accounts and a third party processor.

2CO is basically a third party processor. You use their merchant account to process credit cards. In their plan - they are actually reselling your services / products. They have their own gateway - when you buy something from them - the consumer is directed over to their site because the CC statement will have 2CO's name on it, not the merchant.

To use an electronic gateway, you need to have a merchant account. To become a MAP, you need financial stability and an acquiring bank. You will need to be able to cover all the money that easy merchant processes thru your company.

-Corey

2:20 pm on July 21, 2005 (gmt 0)

New User

10+ Year Member

joined:Jan 19, 2004
posts:28
votes: 0


OK, if I want my own gateway, do you have any idea what would I have to do? What technical equipment would I need? I know I'll need a SSL server for secure transactions.
What about software? Also, if I have the financial stability, is it going to be enough for the bank to give me a MA?
Can you list steps in the appropriate order?
4:26 pm on July 21, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:Feb 28, 2004
posts:1786
votes: 0


To become a gateway - you need a lot more than just an SSL. You need to google CISP compliancy. And you will have to be CISP compliant. This costs between $10,000-$30,000 a year to have a company review your servers and protocol alone to make sure you are compliant.

Honestly, this type of a forum (or most any forum) is not the place to be asking these types of questions. What you are wanting to do takes money, patience, time. If it is not done properly - you will be shut down.

Look at Cardsystems - they have been around for awhile yet they could not get CISP compliant and Visa is no longer supporting them

-Corey

4:40 pm on July 21, 2005 (gmt 0)

New User

10+ Year Member

joined:Jan 19, 2004
posts:28
votes: 0


Anyway, I'd like to thank you for this answer, Corey
11:19 pm on July 21, 2005 (gmt 0)

New User

10+ Year Member

joined:July 17, 2005
posts:2
votes: 0


i have couple of websites and i made general thirdparty credit card processor.
i just open account in it and add websites payment pages, then i put its code to website and it run like 2CO.
i have my merchant account in my bank and i am using their gateway to process. but i use it only for my own websites because its not easy to handle fraud etc..
last month, i investigate about frauds and chargebacks and i improved my thirdparty processor and add very good features for detecting country, cards bank etc.etc..
i recommend you to firstly use your processor on your own website and got experienced.. or you will loose tons of money. much risc..
11:22 pm on July 21, 2005 (gmt 0)

Senior Member from GB 

WebmasterWorld Senior Member 10+ Year Member

joined:Feb 10, 2002
posts:927
votes: 0


Does 'what country you are in' make a difference to the general conditions?
12:15 am on July 22, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:Feb 28, 2004
posts:1786
votes: 0


i have couple of websites and i made general thirdparty credit card processor.
i just open account in it and add websites payment pages, then i put its code to website and it run like 2CO.
i have my merchant account in my bank and i am using their gateway to process. but i use it only for my own websites because its not easy to handle fraud etc..
last month, i investigate about frauds and chargebacks and i improved my thirdparty processor and add very good features for detecting country, cards bank etc.etc..
i recommend you to firstly use your processor on your own website and got experienced.. or you will loose tons of money. much risc..

And if you are not set up to do this with your MAP, this will cause you a lot of problems. When they find you, your account can be terminated and you run the risk of being placed on the TMF list. And then once you are on this list - getting another merchant account is pretty difficult

You should never let another company use your merchant account. It is also against Visa regs if you charge them the discount rate because you are not licensed to do this

-Corey

3:00 pm on July 22, 2005 (gmt 0)

New User

10+ Year Member

joined:Jan 19, 2004
posts:28
votes: 0


It's getting more and more clear to me. So if I use my bank's gateway I do not have to worry about Visa CISP compliancy etc..., but more about fraud and chargebacks?
5:49 pm on July 22, 2005 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:Feb 28, 2004
posts:1786
votes: 0


You will still be subject to some of Visa's CISP requirements. You need to read their website.

-Corey