“Online services for accepting electronic payments, this is what all payment service providers are typically doing and we should not only thank them for making our life easier but also make sure that they are delivering what they promise (security) properly.”
Have you ever thought before making online payments how do they actually get transferred from your account to the merchants account? NO, I thought so neither did I at least till the time I had a discussion with a friend of mine who works in a e- commerce company, you know online websites from where you can buy stuff. He introduced me to the concept of “Payment service provider”, a company or a channel working as a middle man between the buyer and seller online of course. You must be thinking what I am talking about? Well it’s true our money doesn’t get transferred from one account to another magically but companies like Pay pal, Pay Point, Elavon, etc work as the middle men.
Did any of these names ring a bell? When we are making payments I mean actually putting down our account details and hit on “process” one of these name appears. So what do they really do? Characteristically a Payment service provider makes connection with multiple banks and credit cards etc and manage technical connections for them with various commercial sites for electronic transfer. Even in online banking payment service providers play the similar role.
We all know how e-commerce has grown over past few years, everyone is buying something or the other online and these payment service providers play a very important role in their success, they give us (Customers) a sense of security while making online transactions, they take the responsibility for our hard earned money so it is very important for us to understand their importance and functioning.
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