As we know, we have entered the digital era. This era allows us to do various things online, including making payments. This online payment process is often referred to as online payment.
Business owners will usually provide an online payment feature so that the transaction process at their stores becomes easier. So, how does online payment work? Check out the following facts!
Business owners looking to accept payments online will need three components. These components are payment processors, payment gateways, and merchant accounts. Because all components are interconnected, transactions through online payments cannot run if one component is incomplete.
When the online payment is processed, the payment processor will make arrangements for the card transaction. This setting is done by providing information from the customer’s credit/debit card to your account and the customer’s account. There are various kinds of information provided, ranging from security, card limits, to credit card validity. Therefore, if the customer doesn’t have sufficient funds to make a transaction, the payment process cannot be carried out.
Technically, the online payment process will be assisted by a payment gateway. This component serves to connect the payment processor with your business account. Then, your account will also be linked to the credit/debit card issuer. So, it is the payment gateway that will ensure you have received payments from customers.
How do you accept payments online? As it turns out, the payment requires a merchant account which is actually a type of bank account. If you do not have a merchant account, the money sent by the customer is not sent anywhere.
The presence of the online payment feature gives us an additional alternative when transacting. Even though they don’t come directly to the place of business, business owners can transact with customers practically. Have you provided the online payment feature?