Abstract
Electronic commerce is continuing as a thriving business for those companies that streamlined their online business processes; however, making payments over the Internet is still fearsome to customers. Although a variety of payment mechanisms have been developed, payment by credit cards remain the leading mechanism for online payments. For real-time online credit card processing, a merchant needs to install a third-party proprietary software in the merchant e-commerce server. However, many issues need to be resolved before integrating a third-party payment solution to a merchant e-commerce system. In this paper, we attempt to address the current state of the online credit card processing system, especially we discuss the available models of online real-time credit card processing systems. We also discuss several factors such as cost, complexity and security issues related to implementing such a system. The results can be extremely valuable to small businesses that are venturing into Internet commerce.