Payment processing is a general term that refers to how transactions are automated between the customer and the merchant.
How does a payment get processed?
Once the merchant has obtained a merchant account, whenever a customer purchases an item with a credit or debit card, the merchant submits the purchase transaction information to the payment processor used by its acquiring bank via a payment gateway.
Can a processed payment be declined?
A credit card decline occurs if, for a particular reason, a credit card payment cannot be processed and the transaction is declined by the payment gateway, the processor, or the bank issuing the money. It’s a common problem faced by businesses that process recurring payments.
What is payment processing solutions?
In the simplest terms, a payment processor is a company that handles transactions between two parties, such as a merchant and a customer. It accomplishes the payment by relaying the payment information, like a credit card, from the customer to the merchant’s preferred bank account.
How long does a processed payment take?
Typically, a payment can take anywhere from 24 hours up to three days to process the payment. The reason for this time is because the transaction process goes through a number of steps to get from one bank account to another.
How does online payment processing work?
Here’s how internet payment processing works:
- The customer picks up an item and pulls out their card.
- The merchant submits a transaction.
- The payment gateway securely sends the transaction to the processor.
- The processor verifies and approves the transaction.
- The customer’s bank sends money to the processor.
Why are my transactions pending for so long?
This may be because a merchant wants to check you have enough funds available or you made the transaction outside of your issuer’s business hours. It’s important to understand pending charges as they will affect how much credit is available on your account.
