How does eCommerce payment processing work?

The payment processor notifies the card-issuing bank to ensure the customer has available funds, and the transaction is approved or rejected. The payment processor then communicates the authorization or decline back to the payment gateway. The gateway sends the approval or decline back to the merchant’s website.

How do you do a merchant transaction?

Merchant Payments by Corporates

1. Administrator has to add the merchant in “Manage Vendors > Manage Merchant > Enable Merchant”
2. Corporate User has to create the Merchant Payment Limit in “Merchant Limit > Create Merchant Limit” using any one of the accounts mapped to him/her.

How does merchant account is related to a payment gateway?

A merchant account is a holding account where information about payment transactions is collected. Meanwhile, a payment gateway is the link that makes the connection between a customer’s bank and your merchant account, allowing funds to flow into the latter after a payment transaction is cleared.

What is a merchant in payment?

When a customer clicks on the “Pay” button on your website, these are the key players involved in the payment process: The merchant: this is you, i.e an online business operating in any vertical (travel, retail, eCommerce, gaming, Forex, etc), offering a product or service to customers.

How does the payment process work?

Merchants send batches of authorized transactions to their payment processor. The payment processor passes transaction details to the card associations that communicate the appropriate debits with the issuing banks in their network. The issuing bank charges the cardholder’s account for the amount of the transactions.

What is ECommerce payment provider?

A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar.

How does a merchant acquiring work?

Acquirers, also known as Merchant Acquirers, basically collect card based payments which have been accepted from Retailers. They aggregate and separate those payments and then send them to Card Issuers, normally via the respective Card Scheme (e.g. Visa/MasterCard) networks, known as ‘interchange’.