SBS Payment Processes flowchart 2026

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How does payment processing work? A step-by-step guide. The customer initiates a transaction. Payment data is passed through the payment gateway. The payment gateway sends the data to the merchants bank. The payment processor notifies the issuer/the customers bank.
It involves a step-by-step process from the moment the customer initiates the payment transaction to when the funds are deposited into the merchants account.
The payment processor receives the response from the acquiring bank and forwards it to the business. If the transaction is authorized, the business can proceed with the sale. If its declined, the business must request an alternative payment method from the customer.

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The payment gateway receives the funds from the customers issuing bank and transfers the payment to the merchant, typically within a few business days. After the settlement is complete, the customer receives a confirmation message indicating that their order has been successfully placed.
Understanding the Credit Card Payment Lifecycle This lifecycle consists of three key stages: Authorization, Clearing, and Settlement. Each step involves multiple financial institutions and verification processes that ensure secure and accurate fund transfers.
Payment processing is the sequence of actions that securely transfer funds between a payer and a payee. Typically, it involves the authorization, verification, and settlement of transactions through electronic payment systems.
Examples of online payment processes include using bank cards such as Visa, American Express, or Mastercard. In this case, the bank card number is used to process payment through a secure portal. Another example of payment process involves using an eWallet service such as PayPal, Google pay, Amazon Pay, or Apple Pay.

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