CarderPlanet
Professional
Thanks to modern technology, business has virtually no boundaries. Even a small business can grow and become global, but for that, at the very least, there must be a website with the ability to pay online. As far as the site goes, e-commerce platforms come in handy here. They make it possible to assemble an online store on your own, even if you are not an IT specialist. Payment service providers who develop solutions for accepting and processing payments will help with online payments on the site.
To set up a convenient payment acceptance, it is important to choose the right processing center. But first, let's figure out what it is and how exactly online payment providers work.
The technology helps to process, verify, accept or reject credit card and e-wallet transactions using special hardware and software.
Payment processing takes place using software that customers and entrepreneurs use for purchases, where plastic cards and e-wallets are involved.
Gone are the days when customers always and everywhere had to pay with cash only. Credit cards and virtual money are now in use. Online retailers need to adapt to the growth of mobile payments and digital wallets - processing systems are helping with this.
Payment processors accept payment through a series of payment gateways and then either approve or reject the purchase within seconds. If the processing center approves the purchase, the money is transferred to the merchant's bank account.
1. Seller
Sellers are e-commerce companies that distribute their products and services over the Internet. So that buyers can conveniently pay for the product in a few clicks, the entrepreneur needs to set up the site to accept payments from debit and credit cards.
To do this, you need a bank card and a bank that accepts payments on your behalf, and then delivers them to the account offered by the payment processor.
2. Buyer
To make purchases and pay by bank transfer in the online store, the buyer only needs to have a bank card. Further, the payment process depends on which payment solutions the seller has connected to the site.
This can be a classic payment by credit card, when a client enters payment information into a form, a two-click payment via Google / Apple Pay, or a QR code payment.
3. Technology
Payment processing technology provides all stages of the transaction between the seller and the buyer - from entering payment data to reporting a successful payment.
To briefly describe the payment process, first the information about the card passes through the payment gateway, then through the processing center to complete the transaction.
Payment gateways are used to securely transfer customer data during payment processing.
A lot of things happen behind the scenes in a matter of seconds after paying with a credit card on the site. Understanding the flow of online funds transfers will help merchants become more familiar with online payments and find the right provider faster.
How does payment processing work? The list of 6 steps below will help you understand the structure of the process.
1. Customer buys online
Anyone can try to buy anything online. But there is no guarantee that the operation will be approved. After the customer has entered the credit card details, the payment processor processes the information.
2. The payment gateway encrypts the transfer information
Data encryption prevents data theft. The payment gateway encrypts the customer's payment details so they don't fall into the hands of fraudsters.
3. The processing center checks the details of the transfer
After the payment gateway encrypts all customer data, it will pass the information on to the payment processor to ensure that the transaction is possible. As soon as it determines that the request is valid, it will transfer the data to the company or the issuing bank.
4. The issuing bank decides on the transfer
The bank that issued the card confirms the possibility of the transaction. Once the payment processor submits a request to transfer funds, the bank decides whether to authorize the transaction.
Usually, if there are no “red flags” on the payment gateway or payment processor, authorization is quick.
However, if something seems suspicious - for example, the fact that the buyer usually does not spend more than a certain amount, or the payment is made from another country - the payment processor can block the transaction.
Other reasons why transactions are rejected:
5. The payment system requests a transfer of funds
After the processing center informs the payment gateway that the transaction is approved, the money must be delivered to the merchant.
The payment system, as a link, requests the transfer of money from the client's bank to the seller's bank. Since the transaction has already been approved, the transfer is completed and the provider receives payment.
6. The seller receives the money
The funds are now in the merchant's bank account and he can start fulfilling the order.
Processing centers are usually third-party providers and charge merchants with specific fees based on different models.
They are sometimes confused with payment gateways. The processing center analyzes and transmits the payment data, while the payment gateway verifies the correctness and security of all information, and then allows or rejects the transaction.
The reason people confuse the two is because the payment processing software includes or integrates with payment gateways.
3D Secure works as follows: a client places an order and clicks “Pay”. Before the transaction is approved and money is debited from the buyer, the cardholder needs to confirm the transaction. For example, through the bank's mobile application or using a one-time password that comes in sms.
This reduces the risk of fraud and helps ensure that the card is actually being used by the cardholder.
True, in this case, the client will have to prove that he has grounds for the chargeback - to confirm the fact of the purchase and provide evidence that the seller is wrong. For example, that he violated the law, the rules of payment systems or the terms of the user agreement.
These are the rules that merchants must follow to prevent credit card fraud. If the merchant accepts online payments through a service provider, then there is no need to worry about PCI DSS. In this case, it is not the seller who should be certified according to the PCI DSS standard, but the provider company. It also guarantees the safety and protection of buyers' payment data.
Fortunately, the market is overflowing with processing companies that provide secure acceptance and processing of payments. For example, Interkassa provides all must-have payment methods, including bank cards, QR payments, one-click purchases, payments in instant messengers and others.
By entrusting your online store to a reliable provider, you can connect different payment methods to your store and ensure uninterrupted acceptance of payments.
If you have any questions regarding the work of the processing center, please contact our support service. We work 24/7 for your convenience.
To set up a convenient payment acceptance, it is important to choose the right processing center. But first, let's figure out what it is and how exactly online payment providers work.
What is processing
Processing is essentially the automation of electronic transfers between a seller and a buyer.The technology helps to process, verify, accept or reject credit card and e-wallet transactions using special hardware and software.
Payment processing takes place using software that customers and entrepreneurs use for purchases, where plastic cards and e-wallets are involved.
Gone are the days when customers always and everywhere had to pay with cash only. Credit cards and virtual money are now in use. Online retailers need to adapt to the growth of mobile payments and digital wallets - processing systems are helping with this.
Payment processors accept payment through a series of payment gateways and then either approve or reject the purchase within seconds. If the processing center approves the purchase, the money is transferred to the merchant's bank account.
Plastic card processing
There are three key players in payment processing. Understanding the role of each will help you understand how card processing actually works.1. Seller
Sellers are e-commerce companies that distribute their products and services over the Internet. So that buyers can conveniently pay for the product in a few clicks, the entrepreneur needs to set up the site to accept payments from debit and credit cards.
To do this, you need a bank card and a bank that accepts payments on your behalf, and then delivers them to the account offered by the payment processor.
2. Buyer
To make purchases and pay by bank transfer in the online store, the buyer only needs to have a bank card. Further, the payment process depends on which payment solutions the seller has connected to the site.
This can be a classic payment by credit card, when a client enters payment information into a form, a two-click payment via Google / Apple Pay, or a QR code payment.
3. Technology
Payment processing technology provides all stages of the transaction between the seller and the buyer - from entering payment data to reporting a successful payment.
To briefly describe the payment process, first the information about the card passes through the payment gateway, then through the processing center to complete the transaction.
How payment processing works
Online payment processing goes through a number of digital gateways. If the transaction meets the requirements of each individual payment gateway, it proceeds to the next one. The last gateway is the merchant's bank where the money is deposited.Payment gateways are used to securely transfer customer data during payment processing.
A lot of things happen behind the scenes in a matter of seconds after paying with a credit card on the site. Understanding the flow of online funds transfers will help merchants become more familiar with online payments and find the right provider faster.
How does payment processing work? The list of 6 steps below will help you understand the structure of the process.
1. Customer buys online
Anyone can try to buy anything online. But there is no guarantee that the operation will be approved. After the customer has entered the credit card details, the payment processor processes the information.
2. The payment gateway encrypts the transfer information
Data encryption prevents data theft. The payment gateway encrypts the customer's payment details so they don't fall into the hands of fraudsters.
3. The processing center checks the details of the transfer
After the payment gateway encrypts all customer data, it will pass the information on to the payment processor to ensure that the transaction is possible. As soon as it determines that the request is valid, it will transfer the data to the company or the issuing bank.
4. The issuing bank decides on the transfer
The bank that issued the card confirms the possibility of the transaction. Once the payment processor submits a request to transfer funds, the bank decides whether to authorize the transaction.
Usually, if there are no “red flags” on the payment gateway or payment processor, authorization is quick.
However, if something seems suspicious - for example, the fact that the buyer usually does not spend more than a certain amount, or the payment is made from another country - the payment processor can block the transaction.
Other reasons why transactions are rejected:
- Insufficient funds in the account
- Frozen account status
- Incorrect credit card number or expiration date
- Transfer limits
- The card has been lost or stolen
- Address does not match
- Invalid card code check (CCV, CVV)
5. The payment system requests a transfer of funds
After the processing center informs the payment gateway that the transaction is approved, the money must be delivered to the merchant.
The payment system, as a link, requests the transfer of money from the client's bank to the seller's bank. Since the transaction has already been approved, the transfer is completed and the provider receives payment.
6. The seller receives the money
The funds are now in the merchant's bank account and he can start fulfilling the order.
Processing centers VS payment gateway
A processing center is a payment system provider. That is, the company selected by the merchant to securely process monetary transactions using a variety of payment methods so that customers can purchase goods without any problems.Processing centers are usually third-party providers and charge merchants with specific fees based on different models.
They are sometimes confused with payment gateways. The processing center analyzes and transmits the payment data, while the payment gateway verifies the correctness and security of all information, and then allows or rejects the transaction.
The reason people confuse the two is because the payment processing software includes or integrates with payment gateways.
Payment security
The service of transferring money through processing centers is quite safe. This is accomplished in several ways.3D Secure
An additional payment protection method established by Visa, Mastercard and other international payment systems.3D Secure works as follows: a client places an order and clicks “Pay”. Before the transaction is approved and money is debited from the buyer, the cardholder needs to confirm the transaction. For example, through the bank's mobile application or using a one-time password that comes in sms.
This reduces the risk of fraud and helps ensure that the card is actually being used by the cardholder.
Address Verification Service (AVS)
AVS is a system for verifying the payment address of a cardholder. The method consists in checking the accuracy of the information that was provided to the issuing bank. AVS reduces the risk of fraud. Supported by Visa, MasterCard, Discover and American Express.Charjback
This is another way to fight online fraudsters. It helps you get your money back if a fraudulent transaction does occur. For example, a customer bought a product, but the seller did not send him anything or sent a product of poor quality and does not want to change.True, in this case, the client will have to prove that he has grounds for the chargeback - to confirm the fact of the purchase and provide evidence that the seller is wrong. For example, that he violated the law, the rules of payment systems or the terms of the user agreement.
Encryption
The process by which the customer's personal information and transactions are encoded for secure transmission of data during payment processing. Encryption is also an important part of PCI DSS compliance.PCI DSS
International standard for the security of payment cards.These are the rules that merchants must follow to prevent credit card fraud. If the merchant accepts online payments through a service provider, then there is no need to worry about PCI DSS. In this case, it is not the seller who should be certified according to the PCI DSS standard, but the provider company. It also guarantees the safety and protection of buyers' payment data.
Summing up
Payment processing is an integral part of online commerce. Accordingly, the choice of the payment provider that will process your payments determines the success of the business.Fortunately, the market is overflowing with processing companies that provide secure acceptance and processing of payments. For example, Interkassa provides all must-have payment methods, including bank cards, QR payments, one-click purchases, payments in instant messengers and others.
By entrusting your online store to a reliable provider, you can connect different payment methods to your store and ensure uninterrupted acceptance of payments.
If you have any questions regarding the work of the processing center, please contact our support service. We work 24/7 for your convenience.
