Selecting an online payment processor is a crucial choice that requires careful analysis and research. The right choice should support the payment methods that your customers use, and offer solutions for protecting against chargebacks, fraud, and more. Our editors have researched and evaluated, rated and compared top-performing products according to their capabilities as well as coverage options and user experience. They also took into consideration cost as well as customizability, among other aspects.
To process credit card transactions companies require an account with a merchant along with a payment gateway as well as a payment processor. A payment processor is a firm which handles all transaction details, carries the transaction through the processing network and cooperates with the bank to ensure that you receive a payment for your goods or services.
The process starts when a consumer purchases something from your site with credit or debit card. The customer enters their payment information in an online form on your site, and securely transmits the information to the payment processor through an online payment gateway. The processor then contacts the card issuer to determine whether the cardholder has sufficient credit to cover the published here transaction. The processor will then send an email to your website and the gateway when the issuing bank has approved or declined the transaction. The message can be simple: “Your payment has been approved” or more detailed: “Your payment has been declined.”
The processor submits the transaction details for the day 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 bank deposit these funds into your merchant’s account. The entire process generally takes just a few seconds.
