Payment processing is the series of steps that occur between a customer initiating a payment and the merchant receiving the funds. It involves authorization, authentication, clearing, and settlement, ensuring secure and efficient transactions across various payment methods.

Payment Processing

Payment processing

series of steps

customer initiating a payment

merchant receiving the funds

Authorization is the process of determining whether a user has the right to access a resource or perform an action, based on their permissions and roles. It is a crucial component of security systems, ensuring that only authorized users can access sensitive data or perform critical operations.

authorization

Authentication is the process of verifying the identity of a user, device, or system, often serving as the first line of defense in cybersecurity. It ensures that access to resources is granted only to those who have been properly identified and authorized, thereby protecting sensitive information from unauthorized access.

authentication

Clearing is a financial process through which a clearinghouse acts as an intermediary between buyers and sellers to ensure the smooth settlement of trades, reducing the risk of default by either party. It involves the confirmation, matching, and finalization of transactions, ensuring that both parties fulfill their contractual obligations.

clearing

Settlement refers to the process of resolving disputes or concluding transactions between parties, often resulting in the allocation of resources, rights, or responsibilities. It is a fundamental aspect of legal, financial, and social systems, ensuring stability and continuity by formalizing agreements and resolving conflicts.

CUSTOMIZE YOUR LEARNING

CUSTOMIZE YOUR LEARNING

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