According to Kabbage.com, a payment processing centre collects payments and transactions from clients, processes them, and deposits the monies into the business’s bank account. Some processors are configured to take only digital payments, such as credit and debit card payments, via an online merchant’s store.
Payment processing centres are utilised by businesses around the nation to save time and resources when sorting, validating, and accepting consumer payments. According to USBank.com, mail-in processors may take personal checks and money orders provided by clients and deposit the monies into the merchant’s bank account. This includes collecting mail from the post office, opening checks, entering the customer’s payment information, and keeping track of the merchant’s incoming and leaving monies. Some banks, such as U.S. Bank, also offer this service to businesses with bank accounts at their institutions.
These payment centres process digital payments via a payment gateway, the software that completes a sale on a company’s website. The payment information of the customer is transmitted to the financial institution for confirmation. The payment processor deposits the funds from the transaction into a temporary account. A modest charge is deducted by the processor for its services, and the remaining is transferred to the merchant’s bank account.
