Two Types of Payment Processors Merchants Should Know about

There are basically two types of processors, under which most of the payment processing entities will fall. These are: 

Front End Payment Processor

    For payment, the customer can prefer transaction through online submission or cab make a card swipe with POS.

   Now the merchant will send the credit card information with the obtained amount to the acquirer.

·         The information is further processed by the acquirer to the bank.

·  Now the bank will verify the status of customer’s account and will accept or decline the transaction. 

   After the verification, the acquirer sends a code to the merchant and asks the customer to sign the receipt.  

Back End Payment Processors

·         Initially, the merchant will send the settlement to a merchant bank processer or acquirer.

·         Now the acquirer will get the details from the credit card network and process it to the issuing bank.

·         Here the bank approves or rejects the transaction and returns it to the network and allows to debit the amount to customer’s account. 

Now the bank will send the debit statement to the customer at a predetermined date.