To maintain the pace with the current industry businesses are setting up touchless systems. For which they need to incorporate streamlined online payment processing. But before we move any further it's important to know the "three P's": Players, Payments, and Pricing.
If you are running a business, it's important to understand how exactly money moves from your customers to your business. There are two basic stages for any payment processing that are:
the authorization (approving the sale) and
the settlement (getting the money in your account).
- Your customer buys an item on your site with a credit or debit card.
- That information goes through the payment gateway, which encrypts the data to keep it private, and sends it to the payment processor.
- The payment processor sends a request to the customer’s issuing bank to check to see that they have enough credit to pay for your stuff.
- The card issuer sends the funds to your merchant bank, which deposits the money into your account.
- The funds are available.