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Manual and real-time payment
![*]() Whether you choose batch
or real-time processing depends primarily on the number of
transactions that occur on your site. If you expect low volume
sales then manual processing is a viable route. Manual processing
means the order is received with the credit card number through
a phone call, fax, or online form and processed manually,
either by contacting the payment processing company to verify
the credit card number or by using a point of sale terminal
to swipe the card.
It is not only less costly than real-time processing but it
also protects against fraud, as you have more control over
the processing procedure. The major disadvantage is the amount
of time taken to manually process orders.
If you choose batch payment processing, you essentially have
two options that enable you to manually process orders. One,
you can purchase software that allows you to transact your
orders manually. The software is housed on your computer's
hard drive and is connected to your bank through a modem and
telephone connection. Second, you can buy a point of sale
terminal to key in credit card numbers as they come in.
Leasing a terminal is an option, but it is not always the
cheapest route. For example, perhaps you want to purchase
a POS terminal that would cost you $400 to buy. To lease the
same terminal using a 10 percent interest rate for three years
you would pay $520. So, in fact you are paying $120 more than
if you had purchased the terminal. And, in most cases, the
original price is marked-up to start. Therefore, it is better
to shop around and look for the best purchase deal.
On the other hand, real-time payment processing means the
credit card is automatically processed when the customer submits
an order. Once the credit card is verified and approved, the
customer receives immediate notification that the order is
accepted and the funds are transferred from the customer's
bank account to the merchant's account.
Real-time processing is better for large volume sales and
for products that are sent electronically. Time is saved in
processing the order, but it is more expensive to have and
requires continuous monitoring to ensure there is no downtime.
Keep above facts in mind while choosing between batch (manual)
payment processing or real-time payment processing.
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