Payment Processing Software Questions & Answers

Tokenization in payment processing is like giving your credit card a secret identity. Instead of sharing your real card number during transactions, a token—a unique random number—is used instead. This keeps your actual card details safe from hackers because its actual details are not stored or used during transactions.

In payment processing, settlement is when the money moves from a customer to a merchant after a transaction is done.

A refund in payment processing is when a business gives back money to a customer after they've already paid. This typically happens if the customer doesn't like what they bought or doesn't need it anymore.

handle the transfer of money by communicating with the merchant, the customer's bank, and the merchant's bank. They make sure the payment details are correct, check if you have enough money, and then transfer the funds securely.

An issuer in payment processing is the bank or financial institution that provides you with a credit or debit card. They're the ones responsible for approving or declining transactions and managing your account.

The Funding time in a payment gateway is the period of time that it takes to fully settle the amount to the merchant’s account. The time it takes can vary depending on the payment method, payment gateway's settlement cycle.

A decline code in a payment processing is generally a 2-digit alphanumeric code that tells the reason why the payment was declined. For example, Error Code 14 indicates that the card number is invalid. This code can come from card issuer, payment processor, or credit networks.

In payment processing, authorization is when the payment system checks if a customer has enough money or credit to pay for something before finishing the purchase.

Hyperswitch.io aims to connect with multiple payment processors with a single API to improve payment conversions and reduce costs and ops. It offers features such as smart routing, fraud prevention, and real-time transaction monitoring. By simplifying payment processes and offering enhanced security, Hyperswitch.io aims to improve the overall payment experience for businesses and consumers.