In the online transaction process, the payment processor stands as a third party agent appointed by the merchant with the sole aim to handle the credit cards and debit cards related transaction. The main job of payment processor is to give the transaction information to the merchant via a gateway. If the card association accepts the card, the payment processor will send similar information to the merchant and the transaction is carried out, but if the verification is someone denied by the association, the payment processor relays same information to the merchant who will,then, cancel the transaction.
They do not just work as a merchant credit card processingexpert in between user and merchant. Their work can be widely divided as front end processor expert and back-end processor expert. In the case of Front-end processors expert have front-line responsibility. They are responsible for making connections with the card associations. Apart from that the front-end processor is also responsible for providing required authorization to the merchant. The Back-end processor finalizes the settlement made by the front-end user. It is also the responsibility of the payment processor to check and balance the fraudulent act while using the ATM. When you insert the card in the device, the payment processor will check the information given by the ATM. If the information given in the method is similar to the information in the card, the card is expected to be fine. After this, payment processor is updated regarding the confirmation of the authenticity of a credit card.
Payment processing sounds an interesting topic. However, it holds lots of risk along with the job. Some of the risks that are associated with the payment processing are:
1. There are several hackers and attackers these days in and around the nation. They can steal the data and important information too.
2. There is high chance that the agreed cost might slightly vary. The costs are directly proportional to the chance in the scope of the work and also the technical expertise.
Thus, these are the important two risks that one should take care of while payment processing. The payment process acts as the bridge between the user and the merchant. One important thing that you should keep in mind is the total cost that might incur. Sometimes they have hidden costs that makes the deal quite expensive. So make sure that you negotiate and deal before you finalize and register yourself.
Thus, If you are in thinking of the payment processing and are about to hire the payment processor to make sure that you avoid the above two risks. So, what are you waiting for? If you need the third party for the deal, choose the best one.