A Behind-the-Scenes Look at Third Party Processors

If you're still in doubt who to turn to for a smooth integration of your offshore merchant account, then turning to a third- party processor is one of avenues you can seek for assistance.


Just for a quick overview, you set up an offshore merchant account in order to accept credit card payments over the internet. There are a couple of ways by which you can the setup:


● Contact a merchant account provider

● Contact a third- party processor

● Contact foreign banks through the internet or do overseas telephone inquiries


The role of a merchant account provider has been emphasized in recent articles. So, for this time, a ray of light will be shed on third-party processors and their role in an offshore merchant account.


Here are the main characteristics of a third party processor:

● Your business' processes will be under the name of the 3rd party processor.

● Your customer's credit card statements have the third party processors name on it.

● Disputes are made through the 3rd party processor and not the processing bank.

● Your business and customers have limited protection from being ripped off.

● You will be using the third party processors' checkout system

● There will be no fixed monthly fees.

● Some may have setup fees.

● Most have high processing costs

● No contracts involved

● Your business is partially liable for the transactions that the third party processors process.



Let me give you a run of the inner workings of a third party processor. First, after you have been approved and apaid your dues, you can now create the shopping carts containing your products and link in which your customers will click to make their purchases. These links are connected to the third-party processor's server, this is where they manage the product orders for you. Third party processors can process electronic checks and credit card payments, and even ordering over the phone.


After the purchase is confirmed, the sale is automatically credit to you, of course, which the third party processor's part has been collected. Confirmation of the purchase includes Address Verification Service (AVS) that matches the shipping address keyed in by the customer to the registered mailing addresses in their credit cards or checks.


Your profits are forwarded by the third party processor at a scheduled time that you agreed upon. It is appealing to note that they will only collect their part of the bargain when your business makes a sale. Seems like a fair deal, isn't it? But, of course, you will always want a sale, do you?


Just for a quick run down on third party integration, you create third party processor account, then you set up your business' website, then you integrate your website with the third party processor's system, then you do a test-drive and run a real transaction, lastly, when everything proves to be hassle-free, you go live.


It is safe to say that the process in dealing with third party processors has a less-complicated structure, but the difference is in the ordering. The things with them is, they handle the purchases first hand then gives you your part of the sale. Parting words, getting their services is a choice, you examine if you feel secured and comfortable. You always have choices, choose what best suits you.