In this current modern world is generally changing the lives in one or the other way by avoiding the risk of carrying the cash in hand. In this Digitized world Online Credit Card Processing is another example of the way in which we are in.
What is this Online Credit Card Processing System means?Within no matter of seconds, Transaction password is approved by the server card terminal to the processors involved and then to the issuing bank for the final approval some means of code and then back to the merchant details to complete the end process and then completed the final stage of processing of the money.
Front-end Payment Processing: This involves the transactions in which we can see directly.Back-end Payment Processing: This involves in the back end process, Since all the complete transaction are carried between the merchant and the customers bank site and redirects to the site.
Parties Involved/Key Players: Below are the list in which each of the party's involved in this authorization process:
1) Card Holder: A person who have the Card Issued authorizing on behalf of the account holder, Either it may be Credit/Debit Card. Then they present the card to merchants who accepts and provides good and services in terms.
2) Merchant Account Providers: These are the companies that manage and mostly control all the processing such as Distribution, Support, Sales etc. Usually through the help of acquirer. They could be financial institutions,dependent sales organisations etc
3) Credit Card Associations: They their associations viz interchange fees,qualification guidelines etc. These include Business Institutions,Organisational Structures who generally make through Electronic payments(e.g Visa & MasterCard).
4) Cardholder Bank(Issuing Bank): As the name describe the role, They distribute the card to their customers.
5) Merchant Bank(Acquiring Bank): Referred as Merchant Bank,As they maintain their merchant account who need to do business through such card processing payment systems.
List of Services involved in Card Processing System:-
1) Account Payment: It's the simpler method to accept the payment in the site,Since customers enter the necessary payment information on the 3rd party site.
2) Direct Payment Services: With the Apps developed, Mobile numbers will be linked to their respective account numbers in order to facilitate the Direct Payment Service.
3) App-centric Payment Services: Apps may use direct payment services of your won choice,though they will pull in all the requirements in order to make things easier.
4) Merchants Account: You could open merchant account in the Bank in order to maintain your business process.
Almost there are generally 4 ways of Credit Card Processing.
1) Online: This is almost frequently being experienced by the customers,since all the online shopping websites provides cart, These are by the merchants and we generally drop the required items in this cart and check out finally.
2) POS Terminals(Point-of-Sale): Generally referred as point-of-sale,during this process customers just slide their Cards or insert into the POS Machine.
3) Mobile: This method is used though mobile with App in order to buy.We enter the details of the Card.
4) Manual Process: Carried with long process,making customers card to be imprinted on the special piece of paper and then entering the details of the card manually.
However Online Card Processing makes lives easier to make our day to day activities with existing technologies.
