1. Definition of third party payment
Contract with major banks, with a certain degree of strength and reputation to protect third-party independent institutions to provide a trading platform.
The buyer pays through the best third party payment processors channel, through the channel of notifying the seller of the delivery, and the buyer receives the payment from the channel of notifying the seller.
Funds in the third-party mobile payment service platform is a stop, not anyone can become a third-party payment institutions, need to have a strong endorsement to gain the trust of both the buyer and seller transactions.
2. Motivation of third-party payment
E-commerce development to promote the emergence of third-party mobile payment methods, sellers need to be able to achieve the sale of goods online, can only be docked with banks.
But small and medium-sized sellers do not have the technical and economic strength to dock and enough credibility, so that the bank is assured to help him do this, and through the bank also does not have so much energy to dock one by one.
Third-party payment, third-party institutions as a transaction intermediary + credit guarantee, equivalent to payment portal to the bank, they have strong enough technical strength and credit guarantee.
3. The role of payment gateways
The essence of the third-party payment management tools is the payment gateway, the role of the main in several points.
Communication function: the most basic, that is, the transmission of transaction information, true and accurate transmission of transaction information between buyers and sellers to ensure that the goods match.
Network protocol conversion function: The merchant system and the banking system run on different networks and cannot be directly connected. Therefore, an intermediary is required to complete the conversion of network protocols. Bank system: Bank network. Merchant system: Internet.
Data encryption function: It is easy to understand that security is especially important in anything related to money.
Despite the fact that the majority of cash transactions are legal, the government may frequently identify illicit activity through payments reported on Forms 8300, Report of Cash Payments Over $10,000 Received in a Trade or BusinessPDF that are correct and full.
Is Zelle a payment processor for a third party? No. Because it can only link to a user's bank account or debit card, Zelle cannot be considered a third-party payment processor. A transfer that is tied to your personal or company credit card cannot be funded using Zelle.
Square, PayPal, Stripe, and Stax are a few examples of well-known third-party payment processors.
Because we only facilitate messaging between financial institutions and do not hold accounts or settle funds, Zelle is not a third-party network.