or the most part, retail or "swiped" merchants have two main types of payment processing solutions from which to choose. The most common is, of course, the POS terminal, which sits on the merchant's countertop. It uses either a dial-up or an Ethernet connection to access a network, process the transaction, and then print a receipt through a built-in or attached printer.

The second solution is a software application installed on a computer at the check out with a USB-based card swiper attached. Now, however, a technology is emerging that will provide retail merchants with a third option: "Swipe via the Web." Through this technology, retail merchants still have a card-reader attached to their computer, but now they simply go to a Web site to process the swiped transaction.

Behind the Technology

With recent advancements in Internet browsers and Internet protocol-based payment technology, the ability to process retail payments directly through a browser is now possible. Gateways, which were once set up to process only Internet and mail order transactions, now support retail transactions with magnetic-stripe data. These gateways and browsers are now more robust. They support better scripts and languages, which allows the online application to run through the browser on any computer.

In Use Today

Even though this technology sounds new it is already being used. Many counties and municipalities across the United States have implemented it. Courthouses, county registration buildings and police stations, for example, are using USB-card readers; employees simply go to their payment application Web site when they need to process payments.

The benefits of using this type of system are (to name only a few):

• All processing (even through multiple computers) is linked to one merchant account.
• Existing equipment (computer) is used and no software is required.
• The solution provides easy access for processing credit cards instead of being limited to one or two locations.

The Future of "Retail via the Web"

The ability to process swiped credit cards via the Web could become a revolutionary advancement in the credit card industry. Imagine all retailers using computers with a DSL/high-speed Internet connection and processing transactions with this type of solution instead of with expensive cash registers and POS terminals.

Also, imagine the keyboard of every consumer's computer system equipped with a card-swipe or smart-card reader. Imagine Web sites that accept online orders but are all using the same technology. When customers go to these Web sites to make purchases, they do not need to type in their card data. Instead, they simply swipe their cards ... the best part is that these merchants are charged a retail or "swiped" rate. This is definitely one of those technologies to keep your eyes on as it evolves and becomes the next big thing.

Ben Goretsky is the Chief Executive Officer and head of IT Development at USA ePay. He has been working with his brother Alex since they started the company in 1998. E-mail him at ben@usaepay.com or call him at 866 872 3729, ext. 350.