Electronic Payments Save Time and Money, Ultimately Delivering Convenience.
Online payment processing leverages innovative technologies that allow companies to accept payments via the web, including by credit and debit card. A payment processor is a merchant-appointed company that enables these payments. The timesaving afforded by online payments lets companies focus on their core business and avoid the hassle associated with manual payments.
YapStone: A Payment Service Provider Processing Millions of Payments Annually
YapStone’s payment processing solutions contain robust features developed over years of experience as an industry leader in the field, including detailed reporting, which helps companies reconcile and gain insights from analytics, and the ability to handle industry-specific data. We are fully PCI Level One certified, and offer a solution that’s focused on both reliability and security.
How Does Online Payment Processing Work? *
There are a number of steps involved with processing a successful credit/debit card transaction:
Step 1: User Initiates Online Payment
The user logs in to pay rent, HOA dues, vacation home rental charges, inn charges or a church donation. He/she selects from a range of online payment methods including credit card and debit card, provides information such as name, credit card information, and billing address, and then submits a payment.
Step 2: YapStone to Payment Processor
YapStone forwards the transaction details to its payment processor via a dedicated link, which is monitored 24x7x365 to ensure uninterrupted processing.
Step 3: Payment Processor to Card Networks to Card Issuing Bank
The payment processor validates the payment details by sending them through the credit / debit card networks (Visa, MasterCard, American Express, Discover) that in turn relay them to the card issuing bank for authorization.
Step 4: Card Issuing Bank
The user’s card-issuing bank approves or denies the transaction based on the status of the card and whether or not the transaction is within the cardholder’s credit limit.
Step 5: Payment Processor to Card Networks to YapStone
If the payment is approved, the card issuer charges the customer and sends the funds to the card networks less fees that cover costs like credit risk and rewards. The card networks relay the transaction approved status back to the payment processor, which then informs YapStone and passes on the funds, less applicable fees.
Step 6: YapStone to User
YapStone notifies the user whether the transaction is approved or denied via the online payment interface. In the event the payment is denied, YapStone’s payment gateway relays this information back to the site or app and due to the fact that the card issuer did not authorize the transaction, no further action is taken.
Step 7: YapStone to Merchant
Finally, YapStone moves funds from its bank account to the merchant’s. Funds are normally received within one to two business days. Typically, a receipt is emailed to the user, payment receipt notifications are relayed to the merchant, and detailed YapStone merchant reports are updated in real-time. These include the Transaction Activity Report, Batch Reconciliation Report and Transaction Summary Report.
*Not all online payment processing follows this flow. YapStone offers several processing options; this is just one possible scenario.
Why Work With YapStone?
With YapStone you’re considered a valued partner not a customer. That’s a primary reason why all types of companies, from property management companies to vacation rental owners to non-profits, make use of the online payment methods we offer. Of course, there’s also our deep knowledge of the industries in which we focus, our sophisticated payment and risk management platform, and the cache that comes from processing $8-billion in electronic payments every year.