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Business Payment Processing: The Essentials

Our first financial step for companies is creating a business account. It’s needed for transferring and receiving money, ordering debit and credit cards, etc. What about step two? If you offer products or services, acquire a merchant account. However, you must first understand merchant processing and processing systems. Check out the following article, and learn everything about business payment processing.

Business payment systems include processing

Merchant financial services include numerous factors. Companies need payment processing to accept consumer payments. Merchants receive payments via a complicated system of operations and organizations.  First, let’s look at the firms and entities that accept payments, then the procedure itself.

business payment processing

Merchant financial services include various entities and processes involved in accepting and processing consumer payments. Here is a breakdown of these factors:

  1. Merchant: A merchant is a company or individual that sells products or services online. They need payment processing services to enable customers to make purchases.
  2. Clients: Clients are the individuals or corporations who purchase goods or services from merchants. They make payments for their purchases.
  3. Issuing Bank: The issuing bank is the financial institution that provides debit or credit cards to customers. These cards are used by clients to make payments to merchants.
  4. Acquiring Banks/Merchant Banks: Acquiring banks, also known as merchant banks, work with merchants to facilitate the acceptance of payments. They provide merchant accounts and handle the settlement of funds between the merchant and the various parties involved in the payment process.
  5. Payment Processor: Payment processing firms play a crucial role in handling customer transactions. They receive payment data from the merchant and transmit it to the relevant parties for authorization and settlement. Payment processors ensure that the payment is secure and correct, facilitating a smooth transaction process.
  6. Payment Gateway: A payment gateway that delivers customer card data to a processor. A payment gateway might be part of a payment processor or a separate supplier. Learn how to make a payment system in this post. 

Overall, these entities work together to enable merchants to accept and process payments from clients, ensuring a seamless and secure financial transaction process.

Business payment processing: all stages

Sure! Here is a more detailed breakdown of the processing solutions involved in the example:

  1. Client Interaction:
    • Clients visit your website and browse through your candle products.
    • They select the candles they want and add them to their basket.
  2. Checkout Process:
    • At the checkout page, clients choose a payment method, in this case, a debit card.
    • They fill out their payment information, including card details and personal details.
    • Once all the required information is provided, they place the order.
  3. Payment Data Transmission:
    • The merchant receives the order and securely transmits the payment details to the payment processor.
    • The payment processor acts as an intermediary between the merchant, card associations (such as Visa or Mastercard), and the client’s debit card bank.
  4. Encryption and Data Security:
    • The payment processor receives the data and encrypts it to ensure its security.
    • The encrypted data is then sent to the payment gateway, which is responsible for transmitting the data to the card association and the client’s debit card bank.
  5. Authorization and Authentication:
    • The payment processor contacts the relevant card association and the client’s debit card bank.
    • The card association verifies the transaction details and communicates with the client’s bank to check the availability of funds.
    • The client’s bank checks the transaction request against predetermined criteria (e.g., fraud detection, available funds).
    • If the criteria are met, the bank approves the transaction; otherwise, it may deny it.
  6. Transaction Outcome Notification:
    • If the transaction is successful, the client’s bank notifies the merchant’s bank (known as the acquiring bank) about the approved payment.
  7. Funds Transfer:
    • The acquiring bank updates the merchant on the successful transaction.
    • The purchase funds are remitted to the merchant’s account, typically within a specified time period.

   Throughout this entire process, secure and efficient technology and infrastructure, such as the payment gateway, encryption software, and fraud detection mechanisms, ensure the integrity of the transaction. Processing solutions provide merchants with tools and analytics to manage their sales and business operations effectively, while providing customers with a seamless payment experience.

Need business payment services?

business payment processing

In addition to its comprehensive range of white label payment solutions, Akurateco also offers robust security features to ensure the safety and protection of financial transactions. These security measures include data encryption, fraud prevention tools, and real-time monitoring capabilities.

Akurateco’s payment solutions are designed to be highly customizable, allowing PSPs to tailor the software to meet their specific needs and requirements. This flexibility enables PSPs to create a unique and differentiated offering in the market, ultimately attracting more merchants and driving revenue growth.

Furthermore, Akurateco’s platform is built with scalability in mind, meaning it can easily accommodate the growing needs of PSPs as their business expands. This scalability ensures that PSPs can handle increasing transaction volumes without compromising on performance or user experience.

To support its clients, Akurateco provides dedicated technical support and customer service. This ensures that PSPs have access to expert assistance whenever they need it, guaranteeing a smooth and seamless operation of their payment systems.

Overall, Akurateco’s white label payment solutions offer a powerful and flexible foundation for PSPs to establish and grow their payment processing businesses. With its advanced features, robust security, scalability, and dedicated support, Akurateco is an ideal partner for PSPs looking to innovate and excel in the financial technology sector.

The system allows PSPs to integrate cutting-edge payment methods, such as:

  • Intelligent payment routing
  • Cascading
  • Automated merchant onboarding
  • Fraud prevention
  • Tokenization
  • Built-in payment platform analytics
  • Smart billing

More than 300 different acquirers and payment providers are already accessible to merchants via Akurateco’s white label payment gateway with only one integration. Additionally, when customers request additional connections, the organization has a history of quickly developing them.

Akurateco is a cutting-edge supplier of payment software that addresses each client’s unique requirements by creating a personalized solution. Plus, the system is adaptable to many deployment models, allowing clients to use it in SaaS, on-premise, or cloud environments. The business also provides Payment Team as a Service, which is available 24/7 and gives full assistance and direction.

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