Why shouldn’t we just use plain simple credit cards on the internet? Well, of course we can, online information security and verification has grown considerable in the last few years. However, I think that there are considerable advantages in using some of the new systems currently being developed for the online world. And anyway, we might like to keep up-to-date with developments.
Using credit cards on the internet has evolved. Large trading companies can qualify for merchant status and so provide secure logins, data storage and information handling of your personal details, including your credit card. Look for the closed padlock symbol in a bottom corner of your browser to check whether you are within a secure zone. ( If you use Firefox, the url address window turns yellow on secure web pages.)
Small traders have neither the trade turnover nor the trading history to be able to obtain merchant status with a bank, and so qualify for credit card handling. This is only financially practicable for well-established businesses that can convince a merchant bank of their track record (even including having an earth-bound shop front), and who then pass on their merchant account costs to the buyer. Smaller organisms, therefore, find one or more internet value-transfer handlers who will provide, for a fee, secure credit card handling or some other means for their supporters and customers to transfer value (often, to pay money).
So: there are 2 types of payment processors: direct payment processors witch require you to have a merchant account (for the big shots) and 3rd party payment processors witch can handle credit cards (directly or trough direct payment processors) and offer you generally for free an account for your personal or small business use.
