Article provided by: PassThru Merchant Services
We need to first understand a few basics about a payment processor before determining if a payment processor can benefit you. What is most important to a merchant when looking at online payment processing is if a customer can utilize their debit or credit card without any interference. We can typically see that many customers will have transactions rejected and they will wonder why exactly it was but the merchant cannot give the reason why.
You as the cardholder have to determine the exact reason why the transaction was rejected by contacting customer service that is on the back of the credit or debit card. The bank can give you more information in regards to the credit card such as settlement, authorization and funding questions.
The authorization process needs to first be understood because the cards of various customers will not be accepted. Without the authorization, you will incur a loss of sales if you are a merchant Tampa payment processor. The authorization process will pinpoint whether the credit card has the sufficient amount of funds to purchase the item that a consumer desires. You as the card holder can get the needed authorization through a website, credit card machine or through the phone.
The authorization process involves:
1. Customer's presenting credit card to the merchant for the purchase.
2. Information is transmitted through the portal.
3. The request is sent to the brand of the card whether it is Visa or Master Card.
4. The payment will be sent to the card issuer.
5. The issuer will accept or decline the transaction.
6. The payment brand will let the bank know the result.
7. The bank will send you the response whether it is approved or declined.
8. An authorization number will be assigned if it is approved or disapproved.
The settlement process focuses after the transaction has been done. Every payment that goes through has to be funded and cleared. The merchant has to present the approved transactions to the bank. The approved transactions will be sent to the payment brand so that it can properly be cleared. The settlement process is part of the Tampa payment processor procedure.
The settlement focuses on:
1. Submitting transaction information to the bank.
2. Forwarding the settlement request to the payment brand whether it be Master Card or Visa.
3. Payment brand will see the request and will either issue a credit to the bank or issue a particular debit to the issuer.
4. The transaction will be posted to the cardholders account. The customer will receive the monthly statement.
5. The particular cardholder will receive the statement and will make payments accordingly.
The payment processing part focuses on the bank sending money to the bank account so that transactions can be compensated.