Payment processing
Payment processing is the method by which transactions are completed when you buy something, either online or in a store. It involves several steps: when you make a purchase, your payment information is sent to a payment processor, which verifies your account and funds. Once approved, the money moves from your bank to the seller’s account. This process happens quickly and securely, often within seconds. Payment processors ensure that sensitive information, like credit card numbers, is protected throughout the transaction. Essentially, they act as intermediaries, allowing smooth financial exchanges between buyers and sellers.
Additional Insights
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Payment processing refers to the steps that occur when you make a purchase, either online or in a store. When you swipe your card or enter payment details, the payment processor securely communicates between the buyer, seller, and banks to authorize the transaction. This involves checking if you have enough funds and if the card is valid. Once approved, the funds are transferred from your account to the seller's account, completing the purchase. Payment processing ensures that transactions are quick, secure, and accurate, providing a smooth experience for both customers and businesses.