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payment processing

The term used to describe the process and service that automates payment transactions between the shopper and merchant. It is usually a third-party service that is actually a system of computer processes that process, verify, and accept or decline credit card transactions on behalf of the merchant through secure Internet connections.

See Electronic Shopping Carts & Payment Processing in Webopedia's Quick Reference Section.
Also see Credit Card Processing and Merchant Accounts on VendorSeek.com.



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