CreditNet Analysis
PaymentPlus Analysis
CreditNet Analysis
 

CreditNet
http://merchants.creditnet.com/

Transaction time averages less than 15 seconds

Credit Card Network is a leading provider of Secure Electronic Commerce Payment Solutions. A subsidiary of Internet Credit Network, Inc., Credit Card Network is headquartered in Seattle, WA, and was founded in October 1994.

Online Processing Explained

Making purchases over the Internet involves five parties: the customer, the customer's credit card issuer (Issuing Bank), the merchant, the merchant's bank, and the company processing credit card transactions over the Internet. A merchant account, which is given by an "Acquiring Bank" or "ISO" (Independent Sales Organization), is needed in order to accept credit cards.

A customer enters your website and decides to place an order on a product/service. The customer selects the product/service via your shopping cart or catalogue. The order is totaled, and a request is made to purchase. The customer now takes his credit card, which he gets from an "Issuing Bank," and enters the sensitive data (credit card number, shipping address, etc.) onto the given form. The sensitive data is then submitted, collected and passed securely through our server. This data collection is done in real time by our system (IPOSS) via the Web, or can be collected by mail or telephone and then entered through our virtual terminal.

Now with all the needed information, our IPOSS system securely contacts the processor associated with the merchant's Merchant Account, and verifies that the credit card number is valid, not stolen, etc., as well as comparing the card number to our anti-fraud database. If all passes correct, the purchase price will be reserved from the "Issuing Bank" of the consumer's credit card, and allocated to the merchant's Merchant Account. This transaction is then added to a growing "batch" that is associated to the Merchant Account.

Early each morning, the processor will settle the Master Batch; it is at this time that all moneys move. Funds reserved will be transmitted from the Issuing Bank of the cardholder's credit card to the merchant's Merchant Account. Discount fees associated with the Merchant Account will automatically be paid out of these funds as they are moving.

Copyright © 1999 Internet Credit Network Incorporated. http://merchants.creditnet.com/processing101.htm accessed November 19, 2001.

The Fine Print
Important Contract Elements and Design Issues

A through reading of the contract is very important. What follows are a few of the items that must be addressed regarding the service capabilities of your Merchant Account Bank, your business and privacy policies, and web design issues.

Your Bank

In order to ensure successful integration with IPOSS, please instruct your bank or vendor to use the FDR Omaha platform when setting up your merchant account. FDR is one of the most widely available processors and most banks will support this platform at your request. If your merchant account was already established using a different protocol, most banks will switch it for you at no charge.

Privacy Policy and Business Practices

The following basically states that you can not share any customer information with any third party and that you must keep records going back at least one year on all transactions. These records must be kept in a secured manner with limited access and be made available to CCN upon demand.

Merchant shall not, without the Cardholder's written consent, sell purchase, provide or otherwise disclose any Cardholder account information or other Cardholder personal information to any third party other than Merchant's agents and processing organizers, including Bank, for the purpose of assisting Merchant in its business or as required by law. [However, under part V. this written consent is basically challenged.]

V. FURTHER PROVISIONS

A. Merchant shall not sell, purchase, provide or exchange Purchaser information in any form obtained by Merchant as a result of a transaction covered by the terms of this Agreement to any third party other than to Merchant's Bank or to Merchant's agent for the purpose of assisting Merchant in its business or pursuant to a government request. All information concerning Purchaser so obtained shall be maintained in a reasonably secured manner with limited access to selected personnel until discarding and must be destroyed in a manner that will render the data unreadable.

C. CCN shall have the right to verify all transactions and to examine Merchant's books, records and other papers relating to transactions covered by the terms of this Agreement. For this purpose, Merchant shall preserve all records pertaining to such transactions for a period of at least one (1) year from the date thereof.

Web Design / Content Issues

The following provides an outline of the data elements that must be included on the form submitted from the website to CCN. If you have a "no refund" policy this must be clearly indicated on the form. Details on their site provide the exact variable names to use. The form entries must be validated and you must also have a Return page that allows the customer to change or reenter information in the event that the credit is not approved.

II. RIGHTS AND OBLIGATIONS OF MERCHANT

Section E. If Merchant does not offer refunds or make such other restrictions, the words "no refund", or other appropriate terminology, shall be prominently and legibly written or typed on the order form used by Merchant with respect to performance of this Agreement and provided to Purchaser.

III. TRANSACTION PROCEDURES A. The Merchant shall install the small CCN Script provided by CCN in Merchant's On-line Order Form, to send the Order Form data to CCN's secure server using Secure Socket Layer technology. Merchant shall include in each transaction the name, address, city, state, zip code and country of Purchaser, the shipping address for the transaction and the total transaction amount. When the Order Form has been received by CCN and is displayed in a transaction template on a secure screen, the Purchaser will, at the request of Merchant, enter the Credit Card account number, expiration date, name of the Credit Cardholder, and the address, city, state, zip code and country for mailing of Credit Card statements.
 
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Text Book Credit: New Perspectives on E-Commerce - Introductory. Perry, James and Schneider, G.P., Course Technology, a division of Thomson Learning, 2001. http://www.course.com