What is Online Payment Software?
If a business has an online presence, it needs to start accepting payments online if it isn't doing so already. The main reason is because PayPal Canada's Canadian Landscape Study found that if a small business accepts online payments, it will make more than twice the amount of money than its competitor who doesn't use this technology. With an online payment system, a small business can begin accepting payments with Visa, PayPal, JCB, MasterCard, American Express and Discover.
Custom payment software makes it possible for merchants to accept payments with major credit cards, debit cards or even bank transfers. They can also accept cash or a check without having to charge the customer. If the client charges for recurring payments, monthly subscriptions or for retainers, online payment solutions can accept these forms of payment as well.
How Do Online Payments Work?
The first thing that merchants need to do to begin accepting payments online is set up a merchant account. This account is what will make it possible to accept payments by credit card and debit card.
The second thing that merchants need is a payment gateway. Online payment gateway systems allow merchants to accept payments online as well as traditional forms of payment. With a payment gateway, merchants can accept checks, debit cards, credit cards and gift cards. The merchant takes the consumer's bank information and sends it to his or her bank so that it can be validated, approved and accepted by way of the payment gateway.
The payment processor connects the transactions that occur at the online business with the payment gateway. The payment processor is the entity that settles the transaction and ensures that the merchant receives the customer's payment for the item purchased.
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