Understanding The Process Behind Online Payment

With the advent of new technology, the way of doing business has also changed. People are going online to reach customers around the globe. With e-commerce websites, accepting payments from distant customers have become easy. If your business is not online, then you are definitely lacking behind your competitors. Everything is getting virtual these days, and merchant accounts are playing a key role to make this dream come true.

There are different ways on how customers would be able to pay for purchased goods. Apart from face-to face, online transaction has become really easier these days. Doesn’t matter wherever you are, you can get your payments processed. When a customer makes a payment through a card, all the processes in the back end gets active. Within fraction of seconds a lot of steps take place.

Online payment processing services sounds simple for the customers as he or she needs to swipe a card, however, the process behind it is very complicated. Except the merchant and the customer, merchant service provider, CC network, merchant’s bank, customer’s bank, also plays a huge role. Once the person swipe a card, the payment gateway sends the secure transaction to the processor, the processor sends transaction to the CC network, CC network checks with the customer’s bank and sends result back to the CC network. The processor sends the payment gateway an approval, which is send back to the website as well as merchant. The bank approves the transaction, send it to the CC network, and CC network sends it to the merchant bank. Once everything gets approved, the merchant received his payment.

A merchant account is necessary to accept the payment online. Moreover, the customer should also have a bank account to transfer payment virtually. The steps seems complicated, however, they are managed for a hassle free transaction within the customer and the merchant. 

Read More: Grab Your Business Merchant Account for Affluent Sales