Consumers purchasing items online typically use credit cards to make payments. In order to process payment, a business website or app sends their customer’s card details such as number, expiration date and security code directly to an internet payment gateway, which then sends it encrypted back to an acquiring bank to ensure there are enough funds in their account and processes payment accordingly.
Upon approval of a transaction, funds are transferred by an acquiring bank to a merchant’s bank account and dispersed based on transaction total. Merchants should note that different internet credit card processing providers offer various fee structures; some offer flat-rate pricing which combines monthly subscription costs with set amounts per transaction; this may help provide merchants with a clearer picture of costs associated with internet payment services.
Electronic wallets have become an increasingly popular way of making internet payments, providing users with a prepaid account to store financial data (debit and credit card numbers) safely online and make payments and purchases securely at home or while traveling. It provides users with convenient and safe transactions from home or on the move.
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