When a customer subscribes to your service, the credit card number is sent from Recurly through a payment gateway to your merchant bank account. Once the transaction has been approved, the merchant bank account ultimately settles the transaction and transfers funds to your business bank account. If declined, a detailed error message is sent back through the system to Recurly.
Credit card payments must be submitted through a payment gateway. Payment gateways typically serve specific geographies and currency types. While most merchants require only one payment gateway, companies operating in multiple geographies may require multiple gateways.
The purpose of your merchant bank account is to serve as a ‘buffer’ in the event that transactions are contested via chargebacks. The merchant bank underwrites this risk by assessing fees to each merchant based on the characteristics of their business.
Recurly supports over a dozen payment gateways worldwide. We believe that choice and flexibility help our customers make decisions that are optimal for their unique business requirements.
Recurly also offers its own gateway for U.S.-based customers, the costs of which are included in our service fees. If you don’t already have a merchant account, you can apply for one from within your Recurly account.