Three Things are Necessary for Online Payment

1.

A Merchant Account - A business account with a bank that allows for online transactions. This is where your online payments finally end up. It is not the same as a regular bank account. It is a special kind of bank account.

2.

A Shopping Cart - Allows for online display of your products and provides a method for the user to make selections.

3.

Gateway (Transaction Server) - Connects the shopping cart with a processing network which checks for the necessary funds and either authorizes or denies payment.

All transactions are encrypted to protect sensitive information (including the buyer's credit card number).

"Encryption" is a process by which the information is converted into a form that cannot be easily understood by unauthorized people. Encryption is essentially a way to "code" the information before it is transferred over the internet. Once the information is received at its final destination, it is decoded, or "decrypted."