Debit/Credit Cards: One of the most widely used by consumers.Within an online payment process, you will have the option to accept a wide range of payment methods. The CNP payment processor is an online payment gateway, which is equivalent to the POS. Some may be experts at online processing, accepting card-not-present (CNP) transactions and some may specialise in in-store payments. Some of the things that can be essential while deciding a payment processor are:īeyond the points mentioned, another thing to consider is the fact that not all payment service providers process every type of transitions. While choosing a payment processor, it is important to consider certain things apart from the pricing packages. The merchant bank transfers the amount to the merchant’s account.įor businesses that accept credit or debit cards, payment services are an integral part, for the simple reason that they need to receive money which does not come to them traditionally in the form of a paper currency.The issuing bank then transfers the relevant amount to the merchant bank minus the interchange fee.The issuing bank charges a sum from the cardholders for the transaction.The card association is connected with the issuing bank therefore, the issuing banks receive the details of the transactions and further carries out the process which includes: The merchants send the authorisation request to the payment processor, which then sends the details to the card association. This is where the transaction is deposited into the merchant’s account. The issuing bank then sends either an approval or a rejection status back to the merchant bank and finally to the merchant.Īfter the process of authorisation, comes the process of settling and funding.The issuing bank either accepts or rejects the transaction based on certain criteria.The payment processor submits the transaction to the card association connected to the issuing bank.The merchant sends a request to their payment processor for the authorisation of the transaction and then the payment processor carries out essential steps: Even though the transaction takes seconds, the actual process behind the transaction is intricate. When a customer purchases a good or service, the payment is made with the card at the point of sale (POS). Payment processing services include authorisation, funding, and settling of a transaction. The network payment processors own lets them accommodate a flow of data between all parties. As a payment processor, not only to the merchant, but also making sure even the issuing bank receives its funds. They are entities which synchronise non-cash transactions by validating all information and also distribute funds to the merchant, once a sale is completed. They are an important part of the global financial chain. Payment processors are companies that function as a mediator between merchants, customers, and financial institutions that process transactions.
These transactions mainly include payment methods such as credit cards, debit cards, e-wallets, etc. They make sure merchants receive their money in their bank account from all transactions that don’t involve paper money. Payment processing services are the ones who fulfil a number of steps required from authenticating to settling a transaction. They collaborate between all parties involved to make the payment process efficient and seamless for the merchants and customers. Payment processing services consist of various steps and include different parties such as:īusinesses that provide payment options through credit or debit cards to their customers need a payment processing service provider who would help them in crediting the money into their bank accounts. However, it is a lot more than just tapping the card on a POS machine. On the surface, the entire process of a credit or debit card transaction appears simple, taking only a few seconds. They make sure that transactions are carried out seamlessly to enhance customer experience and improve business reputation. Behind every business, whether it is in-store or online, is a payment gateway and payment processing service providers.
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