Online payment service is leading the online business forward. Well, are you tired of using the traditional payment modes? Are you looking for something innovative through which you can do a lot of things? You are not the only one who wants improvements in the payment system. Merchants across the globe faced a lot of problems after the arrival of this deadly coronavirus. This pandemic has encumbered the growth of the businesses of the small merchants. Merchants are not getting enough customers. On the other side, the cash flow in the business is also going down.
Online Payment Service
Standing in the modern era, it is very important to know about everything about the online payment service. Merchants across the globe have started using this online service. According to a recent survey, small merchants who have already paired their business with such online services are observing a remarkable rise in the overall sales in their business. On the other side, merchants who are sticking to offline transactions are struggling a lot. Moreover, merchants having physical payment equipment are also facing a lot of problems.
The graph of their business is going down. It is happening because people are not leaving their houses due to the pandemic situation. They are giving full preference to the contactless transaction. So, if you have not yet embraced the online platforms, you will end up like those businessmen. Well, if you are planning to make an online shift, you are in the right place. We at Rapidcents believe that people need to know about the online payment service so that they can conduct their internet business smoothly. So, we have elaborated everything here.
How The Online Payment Service Works
Now, if you as a merchant are completely new to this ecosystem, you might be confused in the beginning. But, the good news is that you will not have to worry as we at Rapidcents have elaborated the online transaction process. But, before getting into the process, you must know the important agents that work behind the scenes.
Well, an online gateway is a kind of service that is provided by the payment processor. It authorizes the online transaction. The gateway sends the card details and other important things to the merchant processor.
Well, the transaction process is elaborated below:
- The customers will have to enter his or her transaction card or debit card details after placing the order.
- Then, the merchant processor solutions get the transaction details through the online gateway. The card processor submits the whole data to the network that issued the transaction card such as MasterCard, or Visa.
- Then, the card network checks all the details. After minutely checking the details, the network forwards the details to the bank that generally issued the card to the customer.
- The bank receives information from the network that issued the card. Then, the financial institution checks whether the customer has enough funds available in the account or not. If the customer does not have enough balance available in the account, the bank declines the transaction. However, if the customer has enough balance available in the account, the financial institution approves the transaction.
- After this, the financial institution forwards the same to the network that issued the transaction card to the customers.
- After getting the information, the network forwards the same details to the merchant’s payment processor. Then, the merchant gets the transaction amount in the bank account.
Different Fees Associated With The Online Payment Service
There are different fees that are inextricably associated with the online payment service. It does not matter what payment provider you are using, you will pay these charges. We have highlighted these fees below:
The transaction card processor retains a certain percentage from each sale. This is called the discount rate. The discount rate fee can be anything between 2% and 3%.
By now, you have understood that the online gateway plays a very important role in such a case the online transaction card transaction. Therefore, you will pay a gateway fee. It is a kind of monthly fee that your payment processor will charge. The gateway keeps the transaction card details in the encrypted form. Therefore, you do not have to deal with any sort of fraudulent activity.
Not A Rapidcents Merchant?
As of now, you have understood why you need to enable online payment service in your business. However, when it comes to enabling such a payment service, choosing the best payment processor for your business becomes very important. Otherwise, you will not achieve satisfactory results. Therefore, we will suggest you to go with Rapidcents. It is one of the best platforms that provide online payment services. If you are running an internet business, you must pair your online business with Rapidcents. As of now, you have understood everything about the online payment system. We have also told you about the best payment processor. So, what are you waiting for? Get in touch with Rapidcents today.