It is essential to choose the right payment processor if you run a business accepting debit and credit cards online. A payment processor online is responsible for the transactional heavy lifting that includes everything from capturing the sale to sending you a statement of payment and working with your bank to make sure you are paid.
Payment gateways or PoS terminals are used when a customer purchases something on your website or in-store. The gateway encrypts the data to ensure its security. It transmits it to the payment processor, who transmits it to the card network of the customer. The card network then contacts the bank of the customer to determine if they’ve enough money to purchase the item. If the bank is able to approve the purchase and the card issuer accepts it, they will transfer the funds from their account to the merchant’s bank. The payment processor will relay this information to the merchant’s website or PoS terminal. This will notify the client of the successful payment.
When choosing a processor think about factors such as security, ease-of-use, and compatibility with current systems. Look for a processor that includes APIs or plugins which seamlessly integrate with your online store system or POS. You should also look at the checkout experience of your customers and the reporting and management experience for your staff. Then, lastly, ensure you know the terms of your contract and how it is possible to switch providers in the future.