Choosing an Online Payment Processor

Selecting a payment processor online is an important decision that requires careful research and evaluation. The right payment processor must provide the payment options that your customers are using, and also provide solutions to protect against fraud and chargebacks. Our editors have studied and rated the top alternatives based on features options for coverage, customer service the ability to customize, cost and more.

In order to process credit card payments, a business needs an account for merchants, a payment gateway and a payment processor. A payment processor is an institution which manages all details https://paymentprocessingtips.com/2021/07/08/generated-post-2/ of transactions and processes transactions on the processing network, and cooperates with banks to ensure that you are paid for the goods or services.

The process begins when a buyer buys something on your business through your website using a debit or credit card. They input their payment details into a form on your site, which then securely transmits it to the payment processor via an online payment gateway. The processor communicates with the card issuer, and checks if the cardholder has enough credit to pay for the transaction. The processor will then send an email to your website and the gateway when the issuing bank has either approved or denied the payment. The message could be simple: “Your payment has been approved” or more detailed: “Your payment has been declined.”

The processor sends 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 deposits the funds into your merchant account. The entire process generally takes only a few seconds.