Fashion Accessories

Choosing an Online Payment Processor

Selecting a payment processor online is a major decision that should involve careful study and evaluation. The right choice should support the payment methods your customers are using and provide options to safeguard against chargebacks, fraud, and more. Our editors have studied and evaluated a variety of top-performing options based on features, coverage options, customer experience as well as cost, customization, and more.

A business will require a merchant account, payment gateway, and processor to process credit card payments. A payment processor is a company that manages all details of transactions, moves the transaction through the processing network and cooperates with the bank to ensure that you receive payment for your products or services.

The process begins when a customer purchases something from your site with a debit or credit card. They enter their payment information into a form on your site, which then securely transmits it to the payment processor through an online payment gateway. The processor communicates with the card issuer and determines whether the cardholder has enough credit to pay for the transaction. The processor will then send an answer to your website and the gateway after the issuing bank has either approved or denied the payment. The message could be simple, “Your payment was approved,” or more detailed, “Your payment was declined.”

The processor then sends the data from the day’s transactions to the card network. Then, the bank transfers the funds from the card issuer to the merchant bank (acquiring bank). After a short period of settlement, the acquiring banks deposits these funds into the account of your merchant. The entire process usually takes only a few minutes.

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