A payment processing service facilitates the secure and efficient transfer of payment information from a customer to a merchant, enabling businesses to accept various forms of payment such as credit cards, debit cards, and digital wallets. It involves a payment gateway to capture and transmit data, a merchant account to hold funds, and a payment processor to handle transaction authorization and settlement between the customer’s issuing bank and the merchant’s acquiring bank. The process includes steps for authorization, authentication, approval or decline, and clearing and settlement of funds.