Front-End Network

In payments, a front-end network is the first stage of the transaction process. This is the stage where payment information is collected from the point of sale (POS) terminal or online payment gateway and moved along to the payment processor or acquiring bank.

On the one hand, it’s the central interface between the merchant and the payment infrastructure; behind the scenes, though, It’s actually a complex software platform that securely delivers the data to authorize the transaction and reserve the necessary funds or credit.

Front-end networks are also part of the settlement process. The network is used to pass data back through the card networks to confirm the transaction did happen and was finalized. Note that through all of this, the network is just passing the payment information… not the actual money itself.

When selecting a front-end solution, merchants need to make sure it will integrate with their existing systems. It’s important to check costs, too, as the front-end platform can have a huge impact on fees.