Remove Encryption Remove Facilitators Remove Fraud Detection
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Payment Gateway vs Payment Processor: What You Need to Know

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That being said, they serve distinct roles in facilitating payments. Payment Gateway Payment Processor Primary Function Secures and transmits card data between the customer and the processor Facilitates the actual movement of funds between the customer’s and merchant’s banks Used For Online or card-not-present (CNP) transactions (e.g.

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The rise of generative AI in payment security: A double-edged sword for data privacy

The Payments Association

The dual impact of generative AI on payment security, highlighting its potential to enhance fraud detection while posing significant data privacy risks. From fraud detection to customer support, AI-driven solutions are revolutionising how payments are processed and safeguarded. What is this article about?

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

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A payment processing system is a technology that facilitates the secure transfer of funds from a customer to a merchant. The processor facilitates the transaction by communicating with the payment gateway, issuing bank, and acquiring bank. 3D Secure (3DS) authentication and AI-powered fraud detection add extra security layers.

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The Ultimate Guide to Ecommerce Payment Solutions

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The details are then encrypted and transmitted to a third-party payment gateway for authorization. This requires the merchant to become a registered payment facilitator or PayFac. Payment processors that comply with this regulation protect businesses from data breaches and credit card fraud.

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The Anatomy of a Credit Card Transaction

Clearly Payments

Payment Processor Facilitates communication between acquiring and issuing banks. Merchant Sends Transaction Request : The merchant’s POS system or online payment gateway encrypts and transmits the transaction data to the acquiring bank or payment processor. Merchant Sells goods/services and accepts credit card payments.

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The Ultimate Guide to Online Payment Processing

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Encryption and transfer of payment information The payment gateway that underpins your checkout page will now encrypt the customers payment details as stipulated by industry data security regulations like PCI DSS (Payment Card Industry Data Security Standard) before transferring the data to your payment processor.

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What is a BIN in Payment Processing

Clearly Payments

This routing allows the processor to request authorization for the transaction from the issuing bank, which then approves or denies it based on factors like available funds and fraud checks. Security and Fraud Detection : The BIN can provide valuable data points that help prevent fraud.

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