As a business owner using a merchant account, it is important for you to understand how does the transaction takes place, via the payment gateways, and how the money reaches one from the respective consumers. This article deals with this question and helps you understand the process.
Basically there are 2 stages to process a payment. The first stage is the ‘authorization’ which is basically approving the sale, and the second stage is called ‘settlement’, which is basically receiving the money in the merchant account. And for payment gateway for online technical support consider Noire pay.
The step by step process in basic rudimental description is mentioned below:
-An item is bought on your website by a potential consumer, who makes the payment via a credit card.
-The information provided by the consumer travels via the payment gateway. It encrypts the data right before it is sent to the payment processor to ensure that the data is kept private and is not leaked.
-After that, it is the payment processor that requests the issuing bank of the consumer for the required money to pay for the product.
-The issuer responses to the requests-could be a ‘yes’ or a ‘no’.
-When the request is approved, the processor informs the consumer that the transaction has been accepted, and also at the same time requests the consumer’s merchant bank to credit its account.
This is what happens in the ‘settlement’ stage of the process-
-The issuer of the card (usually the bank) sends the requested amount to the merchant bank, which in turn puts the fund money into your account.
Basically there are 2 stages to process a payment. The first stage is the ‘authorization’ which is basically approving the sale, and the second stage is called ‘settlement’, which is basically receiving the money in the merchant account. And for payment gateway for online technical support consider Noire pay.
The step by step process in basic rudimental description is mentioned below:
-An item is bought on your website by a potential consumer, who makes the payment via a credit card.
-The information provided by the consumer travels via the payment gateway. It encrypts the data right before it is sent to the payment processor to ensure that the data is kept private and is not leaked.
-After that, it is the payment processor that requests the issuing bank of the consumer for the required money to pay for the product.
-The issuer responses to the requests-could be a ‘yes’ or a ‘no’.
-When the request is approved, the processor informs the consumer that the transaction has been accepted, and also at the same time requests the consumer’s merchant bank to credit its account.
This is what happens in the ‘settlement’ stage of the process-
-The issuer of the card (usually the bank) sends the requested amount to the merchant bank, which in turn puts the fund money into your account.
