credit card question

I got my first credit card recently,and make my first online shopping on hostgator using $0.01 for a tiral month host.
I have questions,

how do they draw money from my card? I just give the CC.No and expire date to them.
As well as If someone give me its card info,how can I draw money from his card?

Is it a secuity way to pay and receive money whitout any password requirement? If the receive part abuse your card info,that would be horrible thing.

I am newbie in online pay field,tks for your help.

 

They can charge your card through their payment processor. It electronically transfers the money from your card to their bank account. Your card would then have a balance of whatever they charged you.

If you need to accept credit cards, you need to get setup with a merchant account or a 3rd party processor. Depending on what country you are in it could be cheap or very expensive. I would recommend using paypal to accept payments from people starting out. It is low cost with no setup fee, easy, and very well supported.

 

Tks for your kindly input.
But I still wonder that Is it a too casual payment,anyone pick up your losed card ,he can easily shoping using the info on the card without any password.
Or else the buyer designedly report lost to the bank,then if it will charge back the money?
So how to protect the interest of the seller in this case?

 

Well, usually when you make a purchase over the web, you will need to provide your mailing address which you use with your bank and sometimes the 3 Digit Security Code with is printed at the bank of your card. What is important is that you need to enter the accurate mailing address for the transaction to go through.

In the store, in the US, it appears that there is less requirement for a signature to make in store transactions with a credit card unlike here in Asia where they still do signature checks. In any case, once you know you misplace or drop your credit card, you are supposed to alert the bank or the credit card issuer about it so they can lock the card so all transactions after you report would be declined and hopefully they can trace who stole the card from you.

So be exceptionally careful about it.

Also most US banks allows you to dispute a credit card charge when you see some unusual transaction by doing a chargeback. The banks are usually on the side of the buyer in this case. Of course, sad to say that some buyers are abusing this priviledge to get off from paying anything but most people are generally honest.

 

Yea, you can always do a chargeback, (unless it was stolen by fraud, then unless 100% proven hard to get it)

 

Yes, if you have a virtual terminal. And you'll probably need the cvv as well, not just card number & expiry.

 

As I have learned the hard way, credit cards out of the US do not provide the same chargeback protection.

I use to have a Visa credit card associated with a bank account in central America and there was no such thing as a chargeback -- you could request they investigate but they really didn't so anything about it. I also used a Bank of America Visa in Spain and was overcharged signficantly BUT Visa International's policy is if there is a signature, even if it is NOT yours it is a valid charge.