Online Payment

What Is Online Payment And How To Accept Payments Online

Online payment refers to money that is exchanged electronically. Typically, this involves use of computer networks, the internet and digital stored value systems. When you collect a payment over the internet, you are accepting an online payment. Online payment usually is the transaction that results in transfer of monetary funds from the customer bank or credit card account to your bank account. The online payment can be done from a credit card, checking account or other clearing house like paypal for example.

Payment Stages

• Customer submits the payment information to the merchant. For example customer completes the payment form on the merchant website and submits the information.
• The merchant submits the payment information to the online payment gateway.
• The online payment gateway submits the payment to the payment processor.
• The payment processor authorizes the payment and responds to the payment gateway
• The payment gateway responds back to the merchant
• The merchant responds back to the customer showing if the online payment was successful or not and taking the appropriate action.