The Somewhat Long and Winding Road of Payment Processing

The Somewhat Long and Winding Road of Payment Processing

April 27, 2017 | 3-minute read

With the right purchasing experience, customers (aka cardholders) have it pretty awesome. They go online, click to purchase or donate, securely pay without jumping through login hoops or annoying redirected, seal the deal and go on their merry way.

Same goes for customers’ mobile purchasing experience on merchant platforms, which includes a merchants’ mobile and online “storefront.” It can be so simple to just walk up to someone at an event, buy what you’ve been eyeing or donate to a great cause, have your receipt emailed instantly and go back to socializing.

From a processing perspective, a lot goes into making those moments seamless for businesses and business’ customers.

players in the payment game

  • cardholder
  • merchant platform
  • payment gateway
  • merchant account processor
  • card brands
  • cardholder’s issuing bank

Once a customer pays, the cardholder information travels through a payment gateway (that’s us) for verification. End-to-end encryption is deployed and sensitive credit card data is tokenized to ensure cardholders’ actual data bypasses an organization’s internal network.

The transaction request is then routed through a merchant account processor to the applicable card brand (Visa®, MasterCard®, Discover® or American Express®). At this point, the information goes to the issuing card company or passes through the card brands.

Now it’s time for the cardholder’s issuing bank to step in and verify the transaction. The issuing bank will authorize or decline the transaction based on the available funds or credit.

Next, the information travels back through the previous channels to the payment gateway which delivers the response to the merchant to complete the transaction.

Because the payment gateway works with (and for) the business/merchant most often in this process, it’s important to choose the right partner. PaymentSpring offers a developer-driven gateway with the ultimate in client and PCI compliance support. It’s the “less middle, more (wo)man,” approach, so to speak.