Mobile payments

1
Today when shopping is concentrated over Internet
as well as in physical, payment using credit or
debit card is common. A bank account that helps
the businesses to accept credit cards for
payments is called a merchant account. The card
payments can be processed only through a Merchant
account. If a person dealing with the business
and its card payment does not have a merchant
account, then the payment is done though a third
party, who in turn has a merchant account.
However, a transaction fees called the service
tax gets included during that transaction.
2

• Credit card payment is done using a card
  terminal, where the card in swiped to initiate
  the processing. As the swiping is done, the card
  information is thus read. These credit card
  machines are wired and are connected to the power
  supply and the telephone line. As a credit card
  is swiped, the card terminal contacts the network
  to verify the authorization of the card. The
  machine then either uploads the electronic funds
  to the merchant bank directly, or the service
  provider dials, collects, processes and then
  submits the data to the merchant bank.

3
Nowadays when it has become mandate for the
customer to enter the authentication PIN number,
the wireless credit card machines are becoming
more common, since these can be carried to the
customer rather than the customer being asked to
move to the seller. Even in online shopping with
cash on delivery options, the person who
delivers the item, carries a wireless credit card
machine along, so that the card payment can be
done at the customers doorstep.