Every retailer needs a platform that allows them to process payments. Platforms like BlueSnap make processing payments much easier for companies and customers. Understanding how these platforms work will help companies choose wisely.
What Are the Components of Payment Processing Platforms?
There are three main components of any payment processing platform. Being aware of these components will help business owners better understand how a payment processing platform will meet their needs.
The merchant account is an online bank account. This account allows internet businesses to process online payments. Without this account, merchants would have no way to store the money they collect from customers.
Payment processors handle the processing of all payments received by the merchant. These processors handle the transaction that moves money from the customer’s bank account to the merchant’s.
There is also a payment gateway. The payment gateway is considered the mediator between the merchant and the credit or debit card issuer. Payment gateways are essential because laws are in place that forbid the transfer of data from bank to bank directly.
How Does Internet Payment Processing Work?
There are several steps involved in online payment processing. Having the right processing platform makes each of these steps proceed seamlessly so merchants and their customers do not experience unnecessary stress.
- The customer selects their purchases and proceeds to their cart to check out.
- The merchant then submits a transaction.
- The payment gateway then securely sends the transaction to the processor.
- The payment processor verifies and then approves the transaction.
- Next, the customer’s bank sends the payment to the merchant’s bank.
- The processor then sends the status of the payment, whether approved or denied, to the gateway.
- Next, the merchant receives the message of approval or denial.
- Finally, the merchant receives the payment for the purchase.
- With the right platform, these steps flow seamlessly, allowing merchants to take debit and credit card payments easily. The process needs to be seamless and secure to ensure customers feel safe making a purchase from an online retailer.
There are many payment processing platforms available to merchants. Some of these providers offer implementation services to help merchants install the new platform and go through the setup process. The best platforms integrate easily and make payment processing operations simple and straightforward. With these platforms, merchants and their customers will not have to worry about payments going through correctly.
Choose a Payment Processing Platform Wisely
Merchants need to be careful to research their options before choosing a platform. There are many considerations. First, merchants need to determine their needs and those of their customers. Evaluating their needs first will allow merchants to find a payment platform that meets them.
A merchant should read customer reviews and carry out software tours to determine if the platform will meet their needs. Rushing the process will only lead to poor decisions that could cause a detriment to the merchant’s daily operations. Payment processing platforms make taking payments much easier for online merchants. Learn more about the options today to get started.