For any business operating online, it is critically important today to set up a reliable and convenient acceptance of online payments. However, many companies still have a poor understanding of how online payment processing works and how to choose a company that will process customer payments.
How does payment processing work?
When choosing an online payment processor, it is first important to understand how the whole process works. Conventionally, it can be divided into six steps:
- The customer makes a decision to buy something online. To pay, they enter their payment details (for example, their credit card details). This information is processed by the payment processor.
- The payment gateway encrypts the transaction data. Encryption is necessary to exclude the possibility of fraudsters stealing payment data.
- The processing center checks the possibility of the transaction. When the payment gateway has encrypted the customer’s payment details, the payment processor checks if the transaction is possible. If the request is valid, the data is transmitted to the buyer’s issuing bank.
- The issuing bank confirms or rejects the transaction. The bank that issued the card checks the transaction data (availability of sufficient funds on the account, the correctness of the entered payment data, the presence of a limit on transactions, etc.).
- The payment system requests a payment transfer. When the processing center informs the payment gateway that the payment is approved, the funds should go to the merchant. To do this, the payment system requests funds transfer from the buyer’s bank to the seller’s bank.
- The money is credited to the seller’s account. The funds are credited to the bank account, the seller receives a notification, and can fulfill the order.
Thanks to modern technology, this whole process takes just a few seconds. And these seconds play an important role when choosing a payment processing company. PayAdmit is a one-stop solution for online payment processing and offers almost instant processing of online payments from your clients.
Accept payments from customers all over the world with PayAdmit
PayAdmit offers fast and reliable payment processing. Transaction processing takes a few seconds and runs smoothly. This makes a big difference to conversions and customer satisfaction. Thanks to modern technologies, an anti-fraud system, and smart routing and cascading, PayAdmit guarantees uninterrupted and fast acceptance of payments from your customers.