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What is a Payment Processing System and How Does It Work?

Stax

Payment gateway – The service that encrypts and securely sends payment details from the customer to the payment processor and back to the merchant. Payment information is encrypted and sent for authorization – The payment gateway encrypts and sends the payment details to the payment processor.

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Best Online Gaming Payment Gateway: Secure Payment Solutions for Gamers

Segpay

Here’s how it works: Encryption & Secure Transmission: The payment gateway encrypts the player’s payment details and securely transmits them to the payment processor. Tokenization & Encryption All sensitive payment data is encrypted and tokenized, reducing the risk of data breaches.

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What is a Payment Facilitator: Understanding PayFac

EBizCharge

Support and services: PayFacs typically offer a more comprehensive suite of services, including billing, customer support, and handling disputes. Payment processors focus on processing payments and often require merchants to handle frontline customer service and dispute resolution.

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Understanding No Fee Credit Card Processing: What Every Business Owner Should Know

EBizCharge

This approach helps simplify merchants’ cost structures and can be advantageous if customers are comfortable with the pricing strategy. Secure data handling, encryption standards, and protection against credit card fraud are non-negotiable.