Handling Credit Card vs Inventory

[wrightstork]

I'm doing a site for a seafood market. There inventory is not computerized and things are in stock and out of stock the next day. They have their own boats/fisherman, but also buy from other wholesalers for things they don't get with their boats. Because of this, selling things online via credit card is tricky.

What do I do for payment with credit card? If I use a gateway and charge the credit card at the time of sale and later find that the product is out of stock for weeks, then the customer is probably going to be pretty upset that they bought seafood expecting to get it the next day having already paid for it. The other option is to email the cc number to a secure email and have a person check stock and then process payment. Maybe have them call the customer if things are not in stock for a while and only charge them for what is in stock to ship. The items that are not in stock can then be deleted from the order or placed on backorder based on the customer's wishes.

So, what do I do...charge with gateway, or process after stock check...are there more options that I'm not thinking of????

[marc77]

The other option is to email the cc number to a secure email and have a person check stock and then process payment. Maybe have them call the customer if things are not in stock for a while and only charge them for what is in stock to ship. The items that are not in stock can then be deleted from the order or placed on backorder based on the customer's wishes.

Even this means more work, I would go with this solution. Especially because you don't simply need to say to the client "Sorry, out-of-stock", but could offer him alternatives. I think this makes shopping more personal.

Regarding security, you must ensure that the process involved to make the credit card information accessible to you is 100% secure (SSL for form submissions, e-mail account that uses encryption when taking mails, etc.).

Alternatively, you don't need to "charge" a credit card just to see if a customer can pay the planned purchase. Likely you check for a specified amount a customer is good for a later purchase and get it reserved. When the products are in stock, you turn the reservation into a charge.

[wrightstork]

Thanks for the reply. I will check into the process of making it so the card is reserved rather than charged. I'm not sure which merchant account they use, even though I've called them about it for a few days now

I may not need SSL if the method I use to collect cc info is on the gateway's website. If I collect the info on the site I'm designing, then yes I will purchase an SSL certificate. My host has them for $55/year.

I'm not exactly sure what the process normally is when the client has a merchant account for their storefront already. I'm not exactly sure what to ask them. Do I need username and passwords? Do you have a process you use for obtaining this info? I'd also like to leave an option for the customer to use paypal. Any more enlightenment would be appreciated.

[marc77]

purchase an SSL certificate. My host has them for $55/year.

Have a look at http://www.ssldirect.com/products/ra...rtificate.html - we purchase our SSL certs from this company - $15 per year was the cheapest offer I found.

I'm not exactly sure what the process normally is when the client has a merchant account for their storefront already. I'm not exactly sure what to ask them. Do I need username and passwords? Do you have a process you use for obtaining this info?

Usually the payment processor provides you with all necessary information to set up anything, don't care about at this time :-)

We have made the experience that any automatic payment processing increases the risk of frauds dramatically. And seen the fact that (at least in Germany) it is common for the dealer to pay some kind of service (punishment) fee for each chargeback (29 € to 50 € per transaction), the extra amount of time required and extra security measures are compensated.

At least you should get the chance to check an order by hand before processing payment (you may automatically reserve the amount, but charge the card after a human review).

Anyway, there are of course fraud prevention services provided by most payment processors. These are also quite reliable, but they also cost (usually) an extra amount per transaction.

Hard decisions to be taken :-)

[marksmatter]

I'd process after the stock check. Our cart has a billing tab that enables you to charge for the order after you have tied up any loose ends, or modified the order. Charging when customers place the order would just add headaches in terms of refunds, if that was necessary.

[soccerjb]

marksmatter,
What kind of shopping cart do you use that has a billing tab that enables you to charge for the order after you check the inventory? Where do you store credit card info until you are ready to charge the customer? From what I understand, that info can not be stored because of the PCI Compliance.
We are looking to add a shopping cart to our web site. However, since we sell the same items at our store, we need to check inventory first before charging the customer. Need help the solution to our problem.

[TipPro]

So, what do I do...charge with gateway, or process after stock check...are there more options that I'm not thinking of????

This is a type of situation a lot of online merchants deal with.

When the customer checks out on your store you 'authorize' their credit card. This insures that the card is valid and has the funds available. After the customer's order is shipped then you 'capture' their card. If the item is out of stock long enough that the customer's cancels their order you simply void the 'authorization' you performed on their credit card (this is not the same as charging their card and refunding it).

Do not send credit card numbers via email (even secure email) it is against credit card policy and plus it is creating more work for yourself.

[IdahoPuma]

How about only having stuff the buy now you KNOW can be sent and hook all others to IM so you can respond to them in minutes or inside the hour .
Seafood is nasty to stay on top of but nice margin to compensate .

[IdahoPuma]

How about only having stuff the buy now you KNOW can be sent and hook all others to IM so you can respond to them in minutes or inside the hour .
Seafood is nasty to stay on top of but nice margin to compensate .