How do online payment systems work?

Published by Netvolution on

Online payment systems are much simpler than they might seem. The system starts with the transaction, when the customer decides to purchase a good or service on the internet, using a credit card or other form of electronic payment. The credit card and payment information is then encrypted and authenticated by the gateway and processor. In the matter of just a few seconds, this encrypted information is then authorized and approved, and the sale is completed, upon which point the funds are then sent to the merchant account.