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Within an online payment process, you will have the option to accept a wide range of payment methods. The CNP payment processor is an online payment gateway, which is equivalent to the POS. Some may be experts at online processing, accepting card-not-present (CNP) transactions and some may specialise in in-store payments. Some of the things that can be essential while deciding a payment processor are:īeyond the points mentioned, another thing to consider is the fact that not all payment service providers process every type of transitions. While choosing a payment processor, it is important to consider certain things apart from the pricing packages.
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The merchant sends a request to their payment processor for the authorisation of the transaction and then the payment processor carries out essential steps: Even though the transaction takes seconds, the actual process behind the transaction is intricate. When a customer purchases a good or service, the payment is made with the card at the point of sale (POS). Payment processing services include authorisation, funding, and settling of a transaction. The network payment processors own lets them accommodate a flow of data between all parties. As a payment processor, not only to the merchant, but also making sure even the issuing bank receives its funds.
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They are entities which synchronise non-cash transactions by validating all information and also distribute funds to the merchant, once a sale is completed. They are an important part of the global financial chain. Payment processors are companies that function as a mediator between merchants, customers, and financial institutions that process transactions. These transactions mainly include payment methods such as credit cards, debit cards, e-wallets, etc. They make sure merchants receive their money in their bank account from all transactions that don’t involve paper money. Payment processing services are the ones who fulfil a number of steps required from authenticating to settling a transaction. They collaborate between all parties involved to make the payment process efficient and seamless for the merchants and customers.
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Payment processing services consist of various steps and include different parties such as:īusinesses that provide payment options through credit or debit cards to their customers need a payment processing service provider who would help them in crediting the money into their bank accounts. However, it is a lot more than just tapping the card on a POS machine. On the surface, the entire process of a credit or debit card transaction appears simple, taking only a few seconds. They make sure that transactions are carried out seamlessly to enhance customer experience and improve business reputation. Behind every business, whether it is in-store or online, is a payment gateway and payment processing service providers.