Point of Sale (POS) Glossary
A payment gateway provides authorization codes when a customer’s credit, debit, or other electronic payment is processed at a point of sale register or via online purchase. Alternatively, it will decline methods that are not valid, such as counterfeit, expired, or insufficient funds. Temporary authorizations do not guarantee the transaction will complete
POS sale software, a terminal or gateway stores the authorization codes and later sends them to a credit card processor. A payment gateway determines if the payment method is valid at the transaction time and is necessary for electronic payment processing.
Once the credit card processor receives the authorization codes generated from the gateway, the processor will attempt to settle the transaction. If successful, funds will be transferred from a customer’s bank to the merchant’s account.
An eCommerce website is open 24/7 and accessible from all over the world. Being online and having physical store opens your business to a global market.
You’ve probably been at the register at the grocery store and asked if you wanted to contribute money to a charity as you checked out. Maybe you donated, or perhaps you found it was annoying. It might have depended on your mood that day, or possibly the charity was a deciding factor.