On Wed, 23 Dec 2009, Daniel Jalkut wrote:

} Does any of the merchant's account services offer a similar  
} convenience to PayPal, where the merchant service provider takes  
} responsibility for storing the credit card number of your customer?

I remember posting a year or so ago about this, but no, you don't need to 
store any credit card info [in fact, in many cases it is not permitted by 
VISA, MC, etc]. You can still issue refunds/credits/etc months after a 
purchase via the payment gateway. Having used authorize.net for many 
years, the fees are insanely low when compared to all of these paypal-like 
services [and you actually can call someone when you need to and talk to a 
human within a few minutes].

Setting up a merchant account with your bank is recommended regardless of 
who you use for payments, since accounting is a lot simpler if you have a 
business account and a personal account and keep them 100% separate. 

There are many resellers, but I have found dealing with authorize.net 
direct has resulted in the best service and payment option [$50/month, no 
transaction fee - this is good if you have a high number of transactions, 
otherwise there's a $15/month, plus 0.20 transaction fee]. You do have to 
pay a small percentage to VISA/MC/Amex, etc, and there are add on features 
that can give you some extra security regarding fraud, but unless you're 
selling $1,000 software, the default AVS protection is more than secure. 
Even so, AVS protects against quite a bit of possible fraud [i used 
authorize.net for a site that sold $$$ birding optics and it only missed 2 
transactions that were clearly fraud, but because i settled manually 
5-days a week, the cards were never charged the money, though it was 
ear-marked for up to 7 business days in case we did need to charge them].

Going back to the original point - you can opt to collect the numbers and 
CVV number [though storage beyond a few seconds is not allowed], but there 
is no need to, since the gateway has that info and you can issue refunds, 
etc via them w/o having to know the original number. 

The biggest 'downside' to this? You have to make or use a shopping cart 
that talks to the gateway. This is *very* simple, however and if you're 
just selling a few items, it is something you can whip out in an hour if 
you only type with one hand. :) [and there are dozens of OSS shopping 
carts you can study if you need insipiration].

HTH,

/vjl/

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