This document is designed to answer the most Frequently Asked Questions about EnvisionWare eCommerce Services and credit card processing in libraries.
In terms of credit card, what's the difference between the "bank," a processor, the card (like Master Card or Visa), and a gateway?
Your bank is where you make deposits and write checks (over generalizing). A bank will accept credit card deposits similar to the way it accepts checks. Unlike checks that are taken or mailed to the bank, credit card deposits are transmitted electronically. Banks generally do not process or transmit credit cards, they simply accept them on your behalf.
A processor is a company that handles the card transactions electronically. This may be a terminal transaction in which staff swipes a card into a credit card terminal, or a self-service transaction at a kiosk, self-check, or on the library web site. When the card is submitted via one of the above, the processor handles the transmission from your site to the credit card company (Master Card, Visa, Amex, etc) and then when approved submits the deposit to your bank. Many banks reseller processor services. A bank typically "accepts" credit cards and when you are presented with the agreement, it stipulates the processor used by the bank. Click here for a list of the major processors in North America.
A gateway is a front-end service to processors. Typically, gateway services provide an easy way to integrate card processing into a user's web site. The gateway serves to accept the transactions from a remote web site and then hands off the transaction to a processor. Once the processor completes the task, the deposit is made to the bank. Generally speaking, since a gateway is an added layer in the middle of the process, the gateway service incorporates added fees. This may represent a monthly fee or an increase in the per transaction fee, essentially a commission on top of the processor fee. Examples of gateway services are authorize.net and PayPal, Verisign (now a part of PayPal).
Everyone in the process adds something to the total charge. The processor has a fee, the bank gets a commission, the card company gets a fee, and a gateway service adds a fee. There may be annual fees, programming fees, Internet processing fees, American Express setup fee, customer support fees, etc. All may be aggregated into one total.
How do I get the best deal for processing fees?
Generally speaking, the more choices you have, the better the deal. First you need some information to give to the companies from which you will obtain competitive quotes:
If you are not presently accepting credit cards, then you must estimate. It's important to ask the processor for suggestions. Perhaps raising your minimum will decrease your per transaction fee. The processor will also charge different fees based on the information you will provide:
The more you ask of the patron, the lower the fees, generally speaking.
How can EnvisionWare help?
We provide a service to help libraries locate a processor. A separate service is provided to configure your system, whether EnvisionWare eCommerce Services, STS - Staff Transaction Station, or both.
