Accepting a variety of payments from your customers has never been easier due to payment processing terms. However, there’s a misconception that you can simply electronically invoice a client, request a mobile card from Square, or add a shopping cart to your site and that’s it. While processing payments should be as stress-free as possible, in order for you to save money and grow your business, it’s necessary for you to understand the following three payment processing terms before you start accepting payments. 1. Authorization An authorization takes place at a point–of–sale terminal, virtual terminal, smartphone swiper, eCommerce software website, or over the phone, and confirms whether or not a card is valid and if there are sufficient funds to complete the purchase. Typically, the authorization process only takes a couple of seconds and involves the following steps: Card information is transmitted to a Processor, a.k.a., the third party that …