Processor, Collector, Aggregator or Acquirer? Find out more about the differents types of payment providers:
The cleared amount is handed over by a shop operator to his payment service provider so that he can process the payment with the credit card company. The process of payment processing is also referred to as clearing.
If a customer decides to pay by credit card, they must provide their card details consisting of the card number, expiry date and check digit to the merchant and confirm the purchase and the invoice amount corresponding to the amount cleared. Then, the shop owner passes on the amount cleared to his payment provider, who takes over the authorization and processing of the card payment. If the authorization succeeds, a code will be produced which is proof of the legality of the payment. The payment provider checks the card data for plausibility and validity and handles the payment transactions such as debit and credit of the payment. He ensures that the amount cleared is deducted from the customer's credit card account and credited to the merchant.
For the shop owner, the procedure is associated without much effort. Once the payment provider has settled the clearing with the credit card company and the payment amount has been debited and credited, the online merchant will receive a report on the transactions and credits made to his account.
Due to its high acceptance by internet users, the credit card is mandatory for every shop owner. However, there are relatively high payment fees for the payment method via credit card. The amount which appears on the customer's credit card statement is the cleared amount minus both the discount and the transaction costs, as calculated by the payment provider. Furthermore, online merchants must settle transactions that offer payment by credit card in their shop, setup and basic fee for the services of their payment service provider. The costs incurred are exactly in the transaction contract, which closes an online retailer with its payment provider. In addition, the merchant needs a credit card acceptance contract with an acquirer to implement the payment method credit card.
Get your free quote in only 3 simple steps!