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Credit and debit cards, digital wallets , ACH transfers , and other digital payments have become the norm. To accept electronic payment methods fast and securely, you need a paymentgateway. Its the bridge between your customers preferred payment methods and business cash flow.
Here are the inside details about what defines a payment solutions provider, how processing works, the credit card processing fees , risks, and more. TL;DR There are several parties involved in credit card processing. They include: the merchant, cardholder, cardassociations, acquiring bank, issuing bank, and payment processor.
A secure paymentgateway is one of the main ways merchants can protect their business and customers. Learn More Payment Security Fundamentals Merchants hold a lot of sensitive data when processing transactions, and if not properly safeguarded, hackers could wreak havoc.
Issuing banks Issuing banks, or issuers, are entities that issue customer credit cards and handle the transfer of funds to the merchant’s account. Credit card networks Also known as credit cardassociations, credit card networks manage the technological infrastructure and regulations of credit card processing.
A Acquirer The financial institution that processes payments on behalf of merchants. Address Verification Service (AVS) A fraud prevention tool that checks the billing address provided by the cardholder against the address on file with the card issuer.
In addition to online payments, if an organization wants to accept offline donations via credit cards, a merchant account is used alongside a hand-held credit card reader. A cardassociation is a group of banks that sets the terms for all credit card transactions.
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