If you are looking for a guide who covers the fundamental of online payments and define the differences for a common business model then you are at the perfect stop. If you want to switch your business to the e-commerce store and start accepting online payments then you should give a read to this document to boost ecommerce operations. But before diving into the discussion regarding the stripe role for online payment we should have a clear understanding regarding the working of payments.
It includes how money moves from the customer to your business, how the bank plays its role to facilitate those payments, and how much the cost is included in the system. It will allow you to set the payment model for your own business.
Four Key Players Involved In Each Online Transaction
- CARDHOLDER: The party who owns a credit card
- MERCHANT: The business owner himself
- ACQUIRER: A bank that routes the credit card payments according to the merchant and processes them via the card networks (like Visa or MasterCard) to the issuing bank. Normally acquirers may also partner with a third party to facilitate process payments.
- ISSUING BANK: The bank that expands credit and issues cards to customers after getting the approval of the card networks.
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Steps To Accept Online Payments
It is required to work with each one of these indicators to accept online card payments. The first step is to set up a business bank account and develop a relationship with a payment processor or an acquirer. They help route payments from websites to car networks like MasterCard and visa. It depends on your setup; you may have an individual acquirer and processor. To privately capture payment details, you may require a gateway that helps appropriate protected information. Gateways normally use tokenization to unknown payment details and keep important data out of the system, helping to fulfill industry-wide security guidelines known as PCI standards.
Therefore, the stripe is a great option for you to enhance the performance of your e-commerce store and boost ecommerce operations.
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