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Chapter 11 Working with Credit Card. Methods of Processing Credit Cards Preparing for Cyber Cash Authoring a Credit card Transaction. Methods of Processing Credit Cards. Three Different Types: Offsite Payment Processors Payment Terminal Solutions Component Based Solutions.

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Chapter 11 working with credit card
Chapter 11Working with Credit Card

  • Methods of Processing Credit Cards

  • Preparing for Cyber Cash

  • Authoring a Credit card Transaction

Methods of processing credit cards
Methods of Processing Credit Cards

  • Three Different Types:

    • Offsite Payment Processors

    • Payment Terminal Solutions

    • Component Based Solutions

Offsite payment processors
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.

  • 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.


  • 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

Payment terminal solution
Payment Terminal Solution

  • Ex:

  • 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.

  • 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.


  • Cheapest Solutions for processing Credit Cards.

  • Use normal phone line & not internet.

  • Bank charges much lower fees.

Component based solution
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.



  • Have complete control over credit card transaction.

  • The customer need not leave you web site.

  • Can be processed real time over internet.


  • More Expensive as they require the bank to setup a custom Internet Gateway.

  • Have to write custom scripts which is time consuming.

Preparing for cybercash
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.

Opening a credit card merchant account
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.

  • 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.

Registering at cybrcash
Registering at Cybrcash

  • Cybercash will lead you through the registration process in a series of HTML Forms.

  • To register go to:

  • 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

  • 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

Installing cybercash software
Installing CyberCash Software mode.

  • 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.

Enter follwing information to complete the installation program
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.

  • 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.

  • 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:


  • Will open a test page that enables to test various functions of cybercash.

Authorizing a credit card transaction
Authorizing a credit card Transaction: Socket components. It is used in ASP script to communicate with the Cybercash service.

  • 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.

  • 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.

Settling card transactions
Settling Card Transactions either send or receive from the cybercash service.

  • 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.

Three different processing models for capturing and settling transaction
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.