Centralized Payment Systems
Centralized payment systems are financial platforms where transactions are processed, validated, and recorded through a central authority, such as a bank, payment processor, or financial institution. They handle payment flows like credit card processing, bank transfers, and digital wallets, ensuring security, compliance, and reliability. These systems are foundational to e-commerce, retail, and traditional banking, enabling seamless monetary exchanges between parties.
Developers should learn about centralized payment systems when building applications that involve financial transactions, such as e-commerce sites, subscription services, or banking apps, to ensure secure and compliant payment handling. They are essential for integrating with established payment gateways like Stripe or PayPal, managing fraud detection, and adhering to regulatory standards like PCI DSS. Understanding these systems helps in designing scalable and reliable payment infrastructures that protect user data and facilitate global commerce.