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What is a Payment Processing System and How Does It Work?

Stax

Payment gateway – The service that encrypts and securely sends payment details from the customer to the payment processor and back to the merchant. It authorizes or declines payments based on available funds and fraud checks. It links the merchants eCommerce store or point of sale (POS) system and the financial networks involved.

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The Anatomy of a Credit Card Transaction

Clearly Payments

It occurs in a matter of seconds but consists of multiple stages, from authorization to settlement. Stage 1: Authorization Authorization is the initial step where the transaction is approved or declined. Card Network Communicates with Issuer : The card network forwards the request to the issuing bank for authorization.

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Looking for the Best Payment Gateway? Here’s How to Choose the Right One

Stax

Ensure the gateway offers PCI DSS compliance, encryption, tokenization, and fraud prevention tools to safeguard transactions. The payment gateway collects and encrypts sensitive customer payment details and then securely sends them to the payment processor. Learn More What is a Payment Gateway?

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The Ultimate Guide to Ecommerce Payment Solutions

Stax

It works in tandem with the customers bank or credit card provider to verify and authorize the transaction. It forwards the customers payment details to the issuing bank, gets transaction authorization, and collects the funds on behalf of the eCommerce business. But with more control comes great responsibility.

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The Top Payment Methods For Small Businesses

Stax

You also need a payment services provider that supports your chosen payment methods, but that providers platform must integrate seamlessly with your existing CRM, ERP, payroll, CMS, and accounting software systems. Its role is to encrypt and securely transfer your customers payment data to your payment processor.

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What Are Virtual Terminals? A Guide for Businesses

EBizCharge

Secure payment processing: Data encryption ensures that credit card details and payment data are secure, reducing fraud risk. Enter payment details: The business owner or authorized user manually inputs the customers card information.

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How to Integrate a Payment Gateway into Acumatica

EBizCharge

When selecting a payment gateway, its important to consider factors such as the ability to manage both authorization and capture processes within your ERP system. Processing various test transactions, such as authorization, capture, void, and refunds, helps ensure that all aspects of the payment gateway are functioning properly.