Chủ Nhật, 18 tháng 10, 2015

How Online Payments Really Work - Part 1


We’re not going to sugar-coat it: choosing the right payment processing for your business might be the toughest thing you encounter setting up your business. This blog post series will help you get a good start by teaching you the "three P’s" of processing: players, payments and pricing. In the first part of this series, we’ll focus on the players.
Players There are three main players when it comes to processing credit and debit card transactions — whether you sell online or in person. On one end is you, the business owner/merchant. On the other end is your customer. In between is a lot of technology that connects the two of you. 

1. You, the merchant.
In order to accept card payments, you need to partner with a merchant bank, (sometimes called an acquirer), who accepts payments on your behalf and deposits them into a merchant account that they provide.

2. Your customer.
In order for your customer to buy (and pay for) your stuff, she needs a credit or debit card. The bank that approves her for the card (and lends her the cash to pay you) is called the issuing bank.

3. The technology.
In the middle are two technologies that enable you and your customer to transact. The first is a payment gateway, software that links your site’s shopping cart to the processing network. The second is the payment processor (or merchant service), which does all the heavy lifting: moving the transaction through the network, sending you a billing statement, working with your bank, etc. Often, your merchant bank is also your payment processor, which helps simplify things.

The next post in the series will focus on “payments”. Please visit E-wallet Payment Gateway VTC Pay Stories next post to learn more.

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