With the widespread consumption of internet and online shopping, the technological features have been enhanced. When it comes to online shopping, the rise of eCommerce is hidden from a nonentity with which there has been an exponential increase in online payment. But very few people know what happens behind the screens when they are making an online payment.
The payment processors Canada are very well-designed and structured to ease the payment functions. So, if you are curious about the payment process, we have added the complete guide shedding light on every essential step that’s integrated into this technology. The payment terms and infrastructure will be discussed in this article regarding payment providers Canada. So, have a look!
This is a company or individual offering products and services for selling. In terms of eCommerce, the merchant is the entity that offers products and services for selling through internet mediums. The merchants work in close collaboration with acquiring banks for the receiving and application of a merchant account.
The merchant account accounts through which merchants can accept debit and credit cards which helps in starting the payment receiving and good’s selling. On the other hand, the acquiring bank is a bank that has registered for MasterCard and Visa and can accept the merchant transactions. Every merchant receives a unique merchant account issued by the bank.
This number is used by merchants to identify themselves as the owner of transaction information along with receiving funds. Similarly, the merchant account holders need to comply with set standards and regulations. There are variations in merchant account fees. This fee is designed on a monthly level or per transaction basis.
The shopper is a customer who is at the purchasing end of goods and services while buying from the merchant. The online platforms for buying the products and services ask the users to place an online order on the merchant’s website for goods or services. The shopper is asked to enter the payment details through the https website.
The entered details are stored and encrypted on browsers and can be sent to the payment service provider, payment getaway, or the merchant’s server. This works as the payment authorization, and once done, the merchant initiates the order.
Once the merchant account has been activated by the merchant, the merchant needs to submit the purchasing transaction information to the payment processor once the product is ordered through credit or debit card. The transaction information is used by the acquiring bank through the payment getaway system. The payment getaway is the software through which transaction information is communicated.
Payment Service Provider – The Ultimate Working Cycle
The payment service provider will partner up with the payment processors or acquiring banks for offering the merchant’s capability to accept payments. This service is provided in addition to transactional processing. However, the payment service provider also works on standard compliance, currency processing, and fraud protection.
However, some people are still confused about the payment processors, which is an authorized entity designed to process the payment transactions between buyers and sellers.