General payment process

Payment processing comprises several key steps that facilitate the smooth and secure transfer of funds between the customer and the merchant during a transaction. Payment processing in Sterling™ Order Management System Software comprises of authorization and settlement processes.

Payment authorization is the process of verifying the amount to be charged on a payment method. In this process, a transaction is verified and approved before it is completed to ensure that sufficient funds or credit is available to cover the payment. Whereas, payment settlement is the process of collecting funds for the amount recorded on an order. This process involves transferring of funds from a customer’s account to the merchant’s account for a completed transaction. It ensures that the merchant receives payment for the goods or services provided.