E-commerce Server

What is a E-commerce Server?

E-commerce Server – Web software that runs some of the main functions of an online storefront such as product display, online ordering, and inventory management. The software works with online payment systems to process payments.

A commerce server is a server that provides the basic components and functions of an online storefront, such as a shopping cart, credit card processing and product displays. Commerce servers also manage and maintain accounting and inventory data, also called back-end data.

A commerce server is a product intended for e-commerce websites or e-commerce applications.

Free Merchant Terminal explains Commerce Server

Microsoft is one of the providers of commerce servers. Microsoft Commerce Server was first released in 2000 and was used to creatie e-commerce systems. It uses Microsoft’s .NET technology. The latest release was in January 2009 and includes a comprehensive solution for many business scenarios. The main features of Microsoft Commerce Server include:

  • Multichannel functionality
  • Service-oriented architecture
  • A default site with 30 Web parts and controls
  • What-you-see-is-what-you-get (WYSIWYG) editing
  • Catalog, order and inventory management
  • Management of ads and set rules for ads
  • Profile management
  • Data integration with third party systems
  • 64-bit support

Aside from Microsoft, there are many other software and service companies that provide commerce server products and services as well as the training to use them.

Electronic Data Interchange (EDI)

What is Electronic Data Interchange ?

Electronic Data Interchange (EDI)Computer-to-computer exchange of normal business transactions including payments, information exchange and purchase order requests. The most basic EDI line is a computer-to-computer link. The second level incorporates an application-to-application design where individual companies link at least one in-house system to the EDI interface. The most elaborate version of EDI actually transforms the way business procedures are executed to gain optimal productivity.

The EDI process provides many benefits. Computer-to-computer exchange of information is much less expensive than handling paper documents. Studies have shown that manually processing a paper-based order can cost $70 or more while processing an EDI order costs less than one dollar.

  • Much less labor time is required
  • Fewer errors occur because computer systems process the documents rather than processing by hand
  • Business transactions flow faster.

Faster transactions support reduction in inventory levels, better use of warehouse space, fewer out-of-stock occurrences and lower freight costs through fewer emergency expedites.

Paper purchase orders can take up to 10 days from the time the buyer prepares the order to when the supplier ships it. EDI orders can take as little as one day.

One drawback is that companies must ensure that they have the resources in place to make an EDI program work; however, the need for buying and hiring these resources or outsourcing them may be offset by the increased efficiency that EDI provides.

 

Electronic Draft Capture

What does Electronic Draft Capture Mean ?

Electronic Draft Capture – Submission of credit card receivables payment instruments (drafts) using a software application often hosted on a point of sale terminal device.

When running business and accepting credit card payments, a lot people don’t know what happens behind the scene. There is a reason for this as it’s not really all that important if a person knows what is going on behind the scenes. However, to know the workings better, some will want to know what an electronic draft capture, or EDC is. With that being said, here is a brief explanation.

The System

Without a doubt, when accepting credit cards and credit card processing payments, one will need to use a system to accept payments. With that being said, merchant accounts often provide a point of sale, or POS system to allow a person to run their cards. In the end, this is the easiest way to sell products or services in person from a retail location. However, one has options if they want to sell online or with their smartphone.

How they get equipment:

When running a company, one will need to use the right equipment. When doing so, it’s easy to run the cards and do so quickly. Luckily, credit card processing is not hard, and a small business owner who has the right tools will succeed with his or her merchant accounts. Remember, an electronic draft capture needs a computer or POS setup to run the transaction. Then, when doing so, one can get the money for the product or service they are selling to clients. While this is all true, one must also either buy or rent the equipment, and it’s wise for a small business owner to consider his or her unique wants and needs.

How to use:

Sadly, a lot of older or less tech-savvy people may be intimidated by a POS setup and electronic draft capture, and this is serious problem for some small business owners and employees. However, the truth is, they are not hard to use, and a person with minimal computer experience should have no trouble running a credit card and getting everything taken care of in a quick and easy manner.

When running a company and accepting payments, one should know how things work. That is to say, to get the best deal on merchant accounts and get what one needs, it’s wise to understand the process and talk to people in the industry who can help with the situation, which is ever-changing as new technologies are introduced.

Electronic Funds Transfer (EFT)

What are Electronic Funds Transfer ?

Electronic Funds Transfer (EFT) – Process of transferring funds from one bank account to another without use of a paper payment instrument.

EFTs include direct-debit transactions, wire transfers, direct deposits, ATM withdrawals and online bill pay services. Transactions are processed through the Automated Clearing House (ACH) network, the secure transfer system of the Federal Reserve that connects all U.S. banks, credit unions and other financial institutions.

For example, when you use your debit card to make a purchase at a store or online, the transaction is processed using an EFT system. The transaction is very similar to an ATM withdrawal, with near-instantaneous payment to the merchant and deduction from your checking account.

Direct deposit is another form of an electronic funds transfer. In this case, funds from your employer’s bank account are transferred electronically to your bank account, with no need for paper-based payment systems.

WHY IT MATTERS:

The increased use of EFTs for online bill payments, purchases and pay processes is leading to a paper-free banking system, where a large number of invoices and payments take place over digital networks. EFT systems play a large role in this future, with fast, secure transactions guaranteeing a seamless transfer of funds within institutions or across banking networks.

EFT transactions, also known as an online transaction or PIN-debit transaction, also offer an alternative to signature debit transactions, which take place through one of the major credit card processing systems, such as Visa, MasterCard or Discover, and can cost as much as 3{62768e372d8537b809afef0d6cc6f84c2933509d84808e07d6e4cdfc600a6284} of the total purchase price. EFT processing, on the other hand, only charges an average of 1{62768e372d8537b809afef0d6cc6f84c2933509d84808e07d6e4cdfc600a6284} for debit card transactions.

Encryption

What is Encryption ?

Encryption – Coding or scrambling of information in a file so that it can only be decoded and read by someone who has the correct decoding key. Encryption’s is commonly used in e-mail and other data transfer so that if someone were to intercept the message or data it would not be readable.

Encryption is a means of securing digital data using an algorithm and a password, or key. The encryptions process translates information using an algorithm that turns plain text unreadable. When an authorized user needs to read the data, they may decrypt the data using a binary key.

Encryptions is an important way for individuals and companies to protect sensitive information from hacking. For example, websites that transmit credit card and bank account numbers should always encrypt this information to prevent identity theft and fraud.

Free Merchant Terminal BREAKING DOWN ‘Encryption’

Encryptions strength depends on the length of the encryption security key. In the latter quarter of the 20th century, web developers used either 40 bit encryptions, which is a key with 240 possible permutations, or 56 bit encryption. However, by the end of the century hackers could break those keys through brute-force attacks. This led to a 128 bit system as the standard encryptions length for web browsers.

The Advanced Encryptions Standard (AES) is a protocol for data encryptions created in 2001 by the U.S. National Institute of Standards and Technology. AES uses a 128 bit block size, and key lengths of 128, 192 and 256 bits.

AES uses a symmetric-key algorithm, meaning the same key is used for both encrypting and decrypting the data. Asymmetric-key algorithms use different keys for the encryption and decryption processes.

Today, 128-bit encryptions is standard but most banks, militaries and governments use 256-bit encryptions.

 

 

Federal Reserve Routing Number

What is a Federal Reserve Routing Number ?

Federal Reserve Routing Number – Four-digit number printed as the top half of a fraction in the upper right corner of a check. Identifies the Federal Reserve District to which the Financial Institution belongs.

Routing transit number is a nine-digit numerical code used to identify a banking or other financial institution for the purpose of clearing funds or processing checks in the United States. The routing transit number, as it appears on a check, specifically denotes the banking institution that holds the account in which funds from the check are to be drawn.

Free Merchant Terminal BREAKING DOWN ‘Routing Transit Number (RTN)’

The first four digits of any RTN code will designate the Federal Reserve Bank of the district where the institution is located. The next four digits denote the bank itself, while the last digit is a classifier for the check or negotiable instrument.

RTN numbers are often used when setting up a wire transfer or direct deposit relationship with one’s personal or business bank.

A wire transfer is an electronic funds exchange across a network administered by hundreds of banks worldwide. While no physical currency moves among financial institutions during a wire transfer, information does pass between banks, with regards to the recipient, his or her bank account number, and how much money he or she is receiving. A routing transit number is therefore critical to ensure sensitive information is directed to the appropriate receiving party.

Regarding a direct deposit: senders often use this method for efficient income tax refunds and pay checks. Here, a sender will deposit electronic funds directly into the receiver’s bank account instead of via a paper check. A RTN again is useful in specifying the domain and particular party to whom to direct information.