Payment Processing: What It Is

How a Payment Processor Works

Payment processing is a system that enables transactions between buyers and sellers in electronic payments. Payment processors play a key role in this process, ensuring the security and speed of operations. They accept payment data, verify it, process it, and transfer money from the buyer to the seller.

The work of a payment processor involves several stages. First, when a customer enters their card details on the seller’s website, the payment processor encrypts this information and sends it to the acquiring bank. The acquirer, in turn, sends a request to the card-issuing bank to check the availability of funds and authorize the payment. After successful verification, the issuing bank returns a response, and the processor notifies the seller. As a result, the money is debited from the buyer’s card and credited to the seller’s account.

Payment Gateway and Payment Processor: How Not to Confuse Them

Often, a payment gateway and a payment processor are confused, but they are different elements of the payment system. The payment gateway acts as an interface between the seller and the payment processor. It ensures the secure transmission of data from the buyer to the processor, encrypting it and protecting against fraud.

The payment processor, on the other hand, is responsible for verifying the data, authorizing the transaction, and transferring the funds. Together, these two systems provide a reliable and secure payment process for goods and services.

How Bank Card Processing Works

Bank card processing is a comprehensive procedure that includes several key stages:

1. Transaction Initiation: The customer enters their card details on the seller’s website.
2. Data Encryption: The payment gateway encrypts the card data and transmits it to the processor.
3. Authorization: The processor sends the data to the acquiring bank for verification.
4. Verification: The acquirer contacts the issuing bank to check the availability of funds and the authenticity of the card.
5. Response: The issuing bank confirms or declines the transaction.
6. Completion: The processor notifies the seller of the result, and the money is transferred to their account in case of a successful transaction.

Connecting Payment Processing

Connecting payment processing requires choosing a reliable service provider, registering in the system, and integrating the payment gateway with the seller’s website. It is important to ensure that the selected processor supports the necessary payment methods and meets security requirements.

Which Payment Processor to Choose?

When choosing a payment processor, several factors need to be considered: security, supported payment methods, service costs, and the company’s reputation. It is especially important to choose a processor that meets local market requirements.

For the Indian market, one of the leading solutions is Decie, which provides reliable and secure acquiring services. Decie supports all major payment methods, including bank cards, UPI, mobile wallets, and internet banking. This makes it an ideal choice for businesses of any size in India.

Acquiring in India: Features and Benefits

India is one of the largest electronic payment markets in the world, and the use of acquiring here is particularly relevant. The country is actively developing digital payments thanks to government initiatives and the growth of mobile internet.

Benefits of using acquiring in India include:

1. Wide Coverage: The ability to accept payments from millions of users across the country.
2. UPI Support: A unified payment interface that allows instant transfers between banks.
3. Low Fees: Competitive transaction processing rates.
4. Security: Strict security standards, including data encryption and two-factor authentication.

Conclusion

Choosing the right payment processor and acquiring services is crucial for business success in the digital economy.
Payment processors like Decie offer comprehensive solutions that ensure the security and convenience of payments for both sellers and buyers in India. Connecting a reliable processor allows businesses to quickly adapt to market demands and efficiently process payments.