|Added Jan 29, 2017 Views 119 Rating|
Most businesses have an online presence that enables it to sell its products on its website, they need a way to receive online payments from its customers, and this is where there is a need for online payment company. In receiving online payments there are three elements involved and they are the merchant account, the payment processor and the payment gateway. An incredible fact to highlight is that the merchant account is the bank account that receives the payments made by using a credit or debit card online and it stores the money that the business has accepted online and then transfers it to a bank account after a period of time of time whereas a payment gateway communicates with the providers of credit and debit cards and with the customer’s bank to check if they have enough money to conduct the transaction and if they do not have sufficient funds the transaction does not go through.
A payment processor enables the communication between the payment gateway and the acquiring and issuing of funds from banks; it credits the funds from the customer’s issuing bank to the bank account of the business owner, and they manage the risk as well as the financial and personal information of clients. Such services can be offered by various companies but this is hectic and most firms have begun offering full-stack payment processing services and such companies have collaborated with banks to be able to provide a complete payment solution and these companies are good for new businesses. These companies are too many in the market and selecting the right company can be a bit of a challenge, but if the client is aware of what they are looking for then, the process becomes easier.
A known fact is that security is a major consideration because these are financial transactions that have personal financial details involved and money being transacted and the client needs to make sure the payment processing company is compliant with the latest payment card data security requirements and this standard requires that payment processing companies have some security to protect the card holder such as encryption of information, firewall configuration and limited access to the card information. The firm should also be able to block fraudulent activities so that they reduce the risk for the business.
A fact worth emphasizing is that the client should also look into the coverage of the payment processing company which is determined by the scope of the business, the target customers and where they come from and the extent of the payment processing company should cover issues like the country that the firm serves and whether it deals with other countries outside America like Asia and then the payment company needs to be able to accept services from these countries as per the financial culture and practices of that country in regard to online payments.The Beginner’s Guide to Businesses