APPLICATION SERVICE PROVIDER

The Application Service Provider (ASP) is often the best way to achieve on-line, real time, transparent, credit card processing capability integrated seamlessly with back office solutions in the least amount of time. The ASP has done the entire software code and gateway interface configuration for you.

The ASP will usually provide an on-line, browser based console, unique to the merchant, from which all transactions and records can be viewed. The console will also include a virtual terminal for processing the various credit card transactions such as credits, returns, settlements, etc. You will need to maintain your own Merchant account when using ASP services.

You may need to address the issue of interfacing your storefront with the application. However, many ASPs make this a seamless process by providing the storefront software as part of the package. Other application providers will offer a form based interface for capturing and processing almost anything the storefront can throw its way.

The cost of ASP services can vary widely from a low of $40/month to as much as several thousand dollars per month, depending on the functions included in the application. There may also be a healthy setup fee. Be sure to shop around. Back office ASP services in support of sell side storefronts are not new, but they have evolved rapidly so that cost and range of service are not always equitable.

The obvious advantage to using an ASP over creating your own application is that costs are fixed and software upgrades and maintenance are included. The disadvantage is that you may have trouble finding an ASP that provides all of the back office functions you require at the price you're willing to pay. In almost all instances though, the cost for an ASP solution will be much less than the cost of rolling your own.