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