What is Online Payment Processing?

Payment processing is the technical term for how a business gets paid online by a customer. 

Here’s what you need to know;

  • The Customer – The person who owns the card/funds and makes the payment for a good/service
  • The Merchant– This is the organisation/entity that receives the payment, this can be a limited company, sole trader, charity etc etc – These are often referred to as the “merchant” or “merchant on record”
  • The Payment Gateway – This is a a bit of technology/software that sits behind the scenes of a shopping cart / website that transfers data securely to a payment processor
  • The Payment Processor – This is a financial service organisation, also known as an acquirer/payment facilitator that processes the payment, and supplies the means for a merchant to receive the funds n a “Merchant account” or wallet type solution. Some companies, like Nochex, provide both gateway and acquiring services

What is Nochex?

Nochex is a solution for businesses to take and receive online payments. We provide both gateway and acquiring services, which means whatever you’re requirements are, we can provide a solution for your business to get paid.

Typically, most of our merchants are ecommerce based online businesses that use a shopping cart or piece of software which connects with our gateway. When a customer makes a payment, the funds land immediately in your Nochex account which you can then use to withdraw to your bank account.

How are merchants charged?


Understanding when, and who applies fees

Throughout the payment process, there are fees applied by various parties. From the gateway, issuing bank, acquirer and the card schemes, it can sometimes be confusing.

Nochex uses a blended rate, which brings all the above fees into one rate, so it’s easier to understand what you pay when processing an online payment. 

Aside from a transaction fee, what other fees are applied?

Occasionally, setup charges and monthly fees are applied to accounts. Many gateway providers will have a gateway rental fee, similar to renting out a POS terminal for a shop.

When are transaction fees charged?

Transaction fees are typically taken on the source of the payment. So funds landing in your Nochex account are the net amount, this amount can then be withdrawn to your nominated bank account.

Not sure what you need? Get in touch.

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