Auto Debit vs Manual Payment Processing: Which is Better for Your Business?

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What Is An Internet Merchant Account?

An internet merchant account, as discussed in the introduction of this article, is a merchant account specifically designed for online businesses.

How Does a Payment Gateway Work?

1. The customer enters their payment details online. This data is immediately encrypted. 2. The encrypted data is sent to the payment process via the payment gateway.  3. The payment processor sends the transaction information to the customer’s bank that issued them the credit card – the issuing bank. 

How Does a Payment Gateway Work?

4. The transaction is approved if the issuing bank account has enough funds to fulfill the payment.  5. The transaction is finally authorized, and the encrypted data alone is reversed – from the payment processor to the payment gateway and to your online store.

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