Payment processing is how businesses complete credit and debit card transactions and collect payments. Millions of people use this form of payment daily and it touches every aspect of our daily lives, yet very few people fully understand the process in its entirety. Receiving a payment happens in seconds but so much happens behind the scenes.
The Process
In the case of vacation rental payment processing, the customer is the guest, and the merchant is the vacation rental or property management company. The product or services refer to the accommodation and any other additional services (such as early check-in/ late check-out) that the guest wishes to purchase.
Step 1: Customers select the product or service they wish to purchase and proceed to checkout.
Step 2: They choose their preferred payment options, like credit/debit card, e-wallet, or wire transfers.
Step 3: Payment information is collected and sent as encrypted transaction data to the payment processor. This is enabled by a payment gateway, a consumer-facing interface used to collect payment information. With online payments, the payment gateway comes as a checkout portal, where credit card information can be entered. The gateway securely transmits data to the payment processor, so money from the issuing bank (the customer’s bank) can be transferred to the acquiring account (the merchant’s account).
Step 4: Transaction details are sent to the issuing bank for authorization.
Step 5: Issuing bank authorizes the payment.
Step 6: The acquiring bank is informed about the payment authorization, and facilitates all electronic payment transactions on behalf of the merchant.
Step 7: Funds are transferred from the issuing bank account to the merchant’s account.
The agreed amount of funds to be transferred is called the settlement. Another term commonly associated with this step of the process is merchant processing.
A lot goes on behind the scenes when a payment is made, understanding how this works will help you make the right decision when it comes to choosing a vacation rental payment processing solution.
This post was written by a professional by Exzact Business Solutions. TRANSPARENT | AFFORDABLE | SIMPLE payment processing companies Pinellas Park, Websites, and Social Media Done Right. Exzact Business Solutions are on a mission to educate local businesses to ensure smiles, savings, and solutions. Exzact clients save an average of 30% on their processing alone. No Contracts, Free Equipment, Local Support, No Rate Increases, and More. Exzact Business Solutions goal is to educate the local business community in order to ensure smiles, savings and solutions. Exzact Business Solutions is an Independent Sales Organization with strategic partnerships dedicated to cultivating reliable and trustworthy relationships in the Payment Card Industry, allowing to tailor products and services to the needs of each merchant. Contact EBS and see what a difference having the right advocate can make!
