The future of payment processing seems bright given the growth in e-commerce pur

Posted by Alex Messi on November 28th, 2020

Making e-commerce purchases has become very easy, all you have to do is swipe a card or click a button. It is pretty much a given that whenever you make an online bill payment, the funds will then automatically move from the customer’s account to the merchant’s account. But how do these funds move from one account to another? Is it a quick process? Are there any charges involved? The more you understand the basics of payment processing, the easier it will be for you to use an online payment application to make financial decisions. Mentioned below are the primary steps involved in online payment processing.

• Step 1

On an online bill payment with the help of an online payment application, a payment request is submitted through the buyer’s cell phone, computer, or mobile payment processor.

• Step 2

The data is then routed by the service provider to the buyer’s bank or credit card company via a secure connection.

• Step 3

Depending on the availability of funds, the transaction is either approved or declined by the bank. If approved, the transaction is routed to the service provider for further process.

• Step 4

The transaction is then stored by the payment provider and a record is sent to the buyer and seller both.

• Step 5

The buyer then receives the goods and the seller receives the funds from the buyer’s bank.

This entire process of og money kwtakes place within a matter of seconds. The future of payment processing seems bright given the growth in e-commerce purchases. It not only gives the customer a meaningful and convenient shopping experience but it also helps expand the reach of a business, resulting in a financially stable trade and greater business sustainability.