For this reason, everyone involved in the organization’s finances must understand how online payment works and the flow of money until it reaches the company’s cashier. Therefore, it is necessary to seek more information on the subject to stay well informed.
Want to know how online payment works? Continue reading and check it out!
What is online payment?
Online payment is a means used to pay for a purchase using the internet. In this way, the transaction is made through a platform, application or digital wallet.
As you have seen, although online payment is commonly used in e-commerce, it can be applied at physical establishments. This happens, for example, when the company provides the QR Code for the customer to pay for its application on the cell phone.
Among the payment methods that can be used online are:
- credit card;
- debit card;
- direct debit;
- Bank slip.
What are the online payment methods?
Now that you know what online payment is, it is important to know the main methods available. After all, for settlement to be carried out in the virtual environment, it is necessary to rely on companies that enable technology in their business.
See who they are!
The acquirers are the companies that communicate with the card brand, receive the money from the bank and transfer the amount to the establishment.
The subacquirers are a means of connection between the company and the acquirers, acting as payment intermediaries. If so, they may offer other services such as anti-fraud protection and support.
This is a system that integrates acquirers, conciliators and anti-fraud agents. Thus, it generates greater personalization and guarantees the processing of transactions.
How does the online payment flow work?
By understanding online payment methods, it is time to find out how the money flow works in this alternative. In this way, it is possible to understand the path that the values take until they reach the company’s account.
Customer registration and purchase
In general, the customer registers on the company’s platform by entering personal and delivery information. Then the purchase value is informed and the consumer must provide the data for payment.
At that moment, the customer chooses among the available ways to settle the purchase. If it is a credit card, for example, the consumer must enter the card number, full name, expiration date and security code.
After choosing the payment method, the customer clicks the button to complete the purchase. If the consumer opts for QR Code or code is generated for instant transfer via the mobile app. Upon payment, the amount goes directly into the company’s account.
If the choice is the bank slip, the document is generated and the buyer must pay the amount later. In this situation, the amount is transferred by the bank issuing the bill to the selling company within 5 business days.
In turn, if the customer chose a credit or debit card, the payment flow proceeds to the next steps.
As soon as the order is placed, the system contacts the card brand or banking institution to verify the approval of the purchase. Therefore, the acquirer receives the request, which can be directly or indirectly — through sub-acquirers or gateway.
Then she analyzes the information provided by the buyer. If the data is correct, the system will be authorized to check the card limit or the buyer’s account balance. With this, the acquirer understands whether there is a possibility of authorizing the transaction.
The next step is the anti-fraud analysis , which can be included in the gateway or be an independent system that works with the acquirer and the intermediary. The role of this solution is to analyze user behavior patterns to find potential fraud risks.
Thus, in case of suspicion in the purchase, the establishment receives an alert and can cancel the process. This is a way to reduce the risk of chargebacks , which are cancellations requested by the customer claiming transaction fraud.
On the other hand, if the data presented are in compliance, the process continues for payment approval.
After the anti-fraud analysis, the payment proceeds to approval, completing the transaction. The entire process up to this step can happen in seconds. Thus, the company can issue the invoice and ship the product.
But the process continues for the receipt of the purchase amount. For this, the acquirer communicates with the financial institutions and allows the transfer of money from the customer’s credit or account to the company’s account. This step can take up to 30 days to complete, depending on the conditions signed.
What are the advantages and disadvantages of online payment?
After understanding the online payment flow, it is interesting to understand the advantages and disadvantages of this payment method. Based on the information, financial managers can reflect on whether it is worth joining this modality in the company.
Online payment has several advantages for the company, such as:
- quick approval;
- acceptance of several card brands;
- reduction of expenses with machines;
- increased flow of customers;
- security .
On the other hand, this payment method also has disadvantages, such as the delay in receiving the money and cancellations, in the case of credit cards. However, knowing how to manage the company’s cash flow , these inconveniences can be minimized.