Businesses require several things to set up to ensure seamless transactions with customers and other business-related activities. Before you would start operating your business, you have to anticipate an enormous quantity of duties to knock off your task list as a businessman. One of the most significant duties is payment processing. This is where collaborating with Tailored Pay would be a great help for your business. Organizing a way for your customers to purchase and check whether you have a real shop or an internet eCommerce platform might be quite challenging. On the other hand, choosing a payment processor to check and verify debit and credit card transactions could cost time and effort. There are a lot of guidelines and tips in order to help you to start with your inventory and loans. Below is a brief guide about Tailored Pay as a payment processor.
Tailored Pay: A Payment Processor Like No Other
A payment processor is the one that processes payment transactions. With Tailored Pay, they set up a payment processor (TailoredPay.com) that provides the gateway so that your clients can pay for their purchased goods for you. This means that the payment processing company – in this case, Tailored Pay – provides details from the customer’s debit or credit card to you. They will transmit the data to the client’s bank and to your bank. The transaction would go through if the customer’s card has sufficient balance to cover his or her purchase and is valid. The whole process will just take just a few seconds to complete.
Also, if a customer will dispute and prove that your company had charged them incorrectly, Tailored Pay will handle the incorrect transaction. Nevertheless, it does not imply that they would do these services for free. Obviously, it would not be the customer who will be charged, but it would be charged to your company due to the rule that the business’s corporation is liable in these circumstances. If you make an error at checkout or a client returns an item, your company may be charged a fee.
Furthermore, Tailored Pay conducts security checks to ensure that the customer’s credit card details are legitimate. One of the key responsibilities of a payment processing system is to make sure that fraudulent practices would not occur. This means that payment processors are the ones that enable transaction processing by acting as a bridge between merchants, consumers, and financial institutions. They play an important function in the international financial system.
Payment processors are growing more in demand as the world moves toward the more sophisticated end of the spectrum. They are companies that synchronize non-cash payments by validating all information and disbursing funds to merchants after the completion of a sale. As an online payment processor, Tailored pay is accountable to both the issuing bank (which serves as the payment processor) and the merchant. The infrastructure of Tailored Pay allows them to be able to support the exchange of data among all the parties involved in the transaction.
Important Facts About Tailored Pay
Numerous things that only existed outside the online world before are now gradually shifting and are taking up some space in the online world.
Online Payment
Online payment may be defined simply as the online money transfer or the payment for products and services online. These transactions, regardless of platform, fall within the umbrella of the internet. In general, it is an electronic payment processing system that makes use of the internet to make direct database links between parties selling and purchasing a certain product. This requires the buyer’s selected payment method to be processed, which is often an e-wallet, debit or credit card, or using their bank account.
Payment Gateway
A payment gateway is the front-end technology that sends the customer’s personal payment details to the payment processor. It is an online equivalent to the cash register. Payment gateways also allow card-not-present transactions on eCommerce sites.
Generally, due to security purposes, funds cannot be transferred from one bank to another, but you must allow your payment to get through or vice versa. Therefore, your e-commerce site would require a payment gateway in order to accept credit cards online. Certain banks provide payment gateway services using merchant-acquiring bank agreements or third- party payment processors.
Merchant Account
Having a merchant account enables businesses to accept credit card payments and instantly deposit them in their bank account. The merchant engages with an acquirer, which is often a financial institution or bank that is a card network member, such as Visa or Mastercard. Using a merchant account requires compliance with card association standards and paying fees, which makes it more common among medium and large enterprises. Small businesses and startups usually opt for the simpler Payment Service Provider solution.
Payment Service Provider (PSP)
This is a viable alternative for shops with a minimal card turnover. This option enables them to take card payments online without the need to open another merchant account. Rather than going through the whole process of setting up individual merchant accounts for each business, PSP providers pool the merchant accounts. This has the effect of reducing the costs payable to merchants under this agreement. On the other hand, PSP models may result in security concerns and unexpected account actions (terminated or frozen accounts).
Acquirer
The acquirer is also referred to as the merchant bank. The banking institution is responsible for managing a merchant’s account in order for credit cards to be accepted. The acquirer funds a merchant’s account with card transactions. The terms "payment processor" and “acquirer” are often used interchangeably.
Issuer
The issuing bank or issuer of the cardholder is responsible for paying the acquirer and eventually to the merchant for authorized card transactions and collecting payments from cardholders.
Tailored Pay: The Parties to the Payment Process
A payment processor enables you to process transactions between your clients and your company. Numerous parties are involved, but every transaction has around five to six major participants.
The client
The payment gateway (if not linked with the payment processor)
The business/merchant
The client’s bank/credit card company
Behind the scenes, the process that TailoredPay.com goes through may be a kind of a roller coaster ride, but investing in and understanding how it works would be beneficial for your business.
