It is crucial to conduct extensive research and analysis before making a decision on an online payment processor. The right payment processor should provide the payment options that your customers use, and also offer solutions to guard against charges and fraud. Our editors have researched and evaluated, rated and compared top-performing products by their features such as coverage options, customer experience. They also looked at cost customization, as well as other aspects.
To process credit card transactions the business requires a visit here merchant account, a payment gateway and a payment processor. A payment processor is an organization that handles all the details of transactions, moves the transaction through the processing network and collaborates with the bank to make sure you are paid for your goods or services.
The process begins when a client buys something from your company site using a debit or credit card. They input their payment details into a form on your site which is then encrypted and transmitted it to the processor who processes the transaction via an online payment gateway. The processor communicates with the card issuer and determines whether the cardholder has enough credit to pay for the transaction. When the issuing bank accepts or denies the transaction, the processor sends a response to the gateway as well as to your website. The message can be simple, “Your payment was approved,” or more detailed, “Your payment was declined.”
The processor then sends the details of the transactions for the day to the card network, and then transfers funds from card issuers to the merchant bank. After a short time of settlement, the acquiring bank deposit these funds into your merchant’s account. The entire process generally takes only a few seconds.