Online Payment Processing
In this era of digitalization, you’d rarely come across people who don’t use online modes of payment. Whether we want to shop for groceries, buy trendy clothes, or pay for electronic devices, we’re gradually moving towards cashless payment. We can’t help but love it due to the ease it offers.
Online Payment Processing makes things simple for both the customers and businesses since business owners can keep track of their cash flow and provide a secure way for their customers to pay for goods and services. If you want to adopt online payment processing for your business, it’s best to first familiarize yourself with it and what this concept entails.
If you have any questions, please call CashDiscountProgram.com to get additional guidance on implementing online payments for your business efficiently and safely.
What is Online Payment Processing?
Online payment processing is a hi-tech facility that allows customers to make payments via the internet — no more carrying bulk cash in your pockets, as customers can now pay for goods and services with just a few taps and swipes on their phones. It may sound and look easy, but the process is more complex than you think.
For online payment to go through, you’d require three things:
Once the customer enters the correct card information, such as card number, expiration date, CVV code, the payment will go through without a hitch. Thus, as a business owner, it’s best to keep this payment option open to provide convenience and ease of transaction to your customers.
Imagine a point-of-sale device. Now imagine the same device on your phone, virtually. That’s the payment gateway for you. It is a portal a customer accesses when they want to make a payment for an online purchase.
If you have a website for your business, you’d be connected to your payment processor through this gateway. Once the customer enters their card information in the gateway, the same will be sent to the merchant. As soon as the data passes through the gateway, the payment will be confirmed. Easy!
With a merchant account, you’d be able to accept payments online for the goods and services you sell. Once you receive payment online in the merchant account, the funds will be processed to your bank account the next business day.
How Does it Work?
While online payments are sent and accepted in a matter of seconds, a lot takes place in the background. Here’s the inside scoop:
Customer Buys Product
The transaction is kicked off when the customer adds their credit card information and a secure payment form in the payment portal.
Card Information Is Sent To The Processor
The debit or credit card information is then sent to the payment gateway. From here, the credit card processor takes the wheel to alert the card issuer of the payment’s initiation.
Card Information Is Verified
The processor does its job of sending the payment request to the customer’s bank, which then verifies the card information down to the last digit. If the customer has enough funds, the data is verified, and the funds are held.
As soon as the processor receives a thumbs up from the bank, the payment successfully goes through. The customer is then sent an e-receipt.
The Funds Are Released
The funds that the customer’s bank holds are released to the merchant account. It takes about 1-2 business days for the merchant to receive the released amount.
How Secure Is Online Payment Processing?
You don’t have to worry about losing your Payment (funds) if you’re receiving money via an online mode. Through this means, you can also ensure the safety of your customers’ data. You can choose the best measures of encryption protection to ensure that all your money and information are safely received. Here are a few means through which you can ensure the safety of your customer’s data.
Payment Card Industry (PCI) Compliance: If you meet PCI’s operational and technical standards, you can protect your customer’s card details.
Secure Sockets Layer (SSL) Protocol: With the SSL, you provide your customers with an internet security encryption protocol, which keeps their data safe and secure. If you have an SSL certificate, you will get an “S” at the end of your website “HTTP,” which will also serve as a declaration to other businesses and customers.
Tokenization: Tokenization builds an additional security wall for data protection by converting important data into random numbers that are incomprehensible to potential hackers.
Get Guidance by Cash Discount Program
The world of cashless payment is confusing, especially to a non-technical person. However, the fact remains that incorporating it has become crucial to a business’s success. Also, there is a lot more to online payment processors than what we’ve discussed.
Schedule a call with the CashDiscountProgram.com to discuss how online payments can be implemented for you. Our team of experts specializes in processing credit cards and agonizes over every detail to ensure your payment methods are integrated seamlessly.
The cash discount program can help you process transactions over the internet with complete end-to-end processing services. It will be created to accept all major credit cards and includes all ATM, debit, EXT, JCB, and petroleum card. Your cash discount program will consist of complete training and set-up from beginning to end, making it very simple and quick to begin.
We also help businesses eliminate merchant fees, something that causes a headache to business owners. We adhere to all the rules and are compliant in all 50 states and there are no hidden charges.
If you want to turn to online modes of receiving payment, mainly via credit cards, contact our company today to get started.