How Does An Online Payment Processing Works

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How Does An Online Payment Processing Works
It can be very beneficial to know a little bit
about online transaction handling before
beginning to accept this reimbursement form.
Payments provided on a website are verified and
authorized in real time, meaning the customer
must wait for a confirmation showing everything
went through as desired. This type of processing
requires an internet merchant account, payment
gateway, integrated shopping cart, and a
transaction form. The merchant account is used by
the processing company or bank to obtain
verification from the credit provider and move
the funds into the supplied merchant account.
Online payment processing requires a gate way to
securely send the customer information to the
appropriate bank. It is joined with the shopping
cart and the supplied transaction form. The
shopping cart keeps track of customer selections
so they can be populated into the form. Gateways
send the data after a user has clicked the
submit button on the transaction page. Merchant
Account Heres how do these components work
together! Read on Integration
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Integration of the above mentioned components
creates a dependable setup for businesses wanting
to accept online payments. What exactly happens
once all these factors are in place? First, a
customer will peruse the company website to find
items they want to purchase. They add each
product to the shopping cart which keeps track
of all selections until the customer is ready to
check out. Once all items have been selected,
the customer proceeds to the checkout page. This
page may be accessed via a login or can
immediately appear after clicking on a supplied
button. A business can have additional pages
regarding shipping options or other non-payment
details integrated into the checkout process. In
the simplest form, the customer is directed to a
single page requiring their name, address, and
compensation details.
Validation
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The customer will enter their information which
is then validated by the site. If a field has not
been completed correctly, they are prompted to
re-enter the information. Payment data is first
sent to the business back-end database, secured,
and then sent to either the processing companies
own website or the bank for completion.
Cardholder transaction details are authenticated,
authorized, and assigned a status by the
provider who sends this status back through the
gateway to the customer. At that point, the
payee is either supplied a confirmation number or
prompted to supply another type of
reimbursement. A business wanting to accept
online payments can expect fewer difficulties
when a merchant account and payment gateway are
in place.
Authentication
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Precise technical details apply whether a
business is taking the transactions on their own
designed pages or through a provider website.
Every page must contain SSL (Secure Sockets
Layer) encryption along with authentication
procedures. An application programming interface
or API is required for secure data posting as
well as payment confirmation processes. Providers
should supply additional choices regarding page
layout features, branding, and redirect services
to reflect the business. This is not an issue
when the transaction will be taken directly over
the merchant website. Every business has a few
decisions to make when starting online payment
processing. Transaction acceptance can flow very
smoothly once these items have been properly put
in place. If you would like to learn more about
the best merchant account for your business you
can contact Virtuous Payments. With years of
experience in Electronic Payments Virtuous
Payments is a method to provide true
transparency in an ever-changing payments world
through innovative and reliable payment
solutions.