If you’re a business that accepts credit or debit card transactions online, you need to select the most suitable payment processor. Online payment processors take care of all the heavy lifting, from capturing sales to sending you a statement of your bill and working with your banks to ensure you get paid.
When a buyer purchases something on your site or in person at your brick-and mortar store their credit or debit card details is processed by a payment gateway or PoS terminal. The gateway secures the information to ensure its security and then sends it on to the processor that processes payments, which in turn, transmits it to customer’s card network. The card network then contacts the bank of the customer to determine if they have enough cash to purchase the item. If the bank accepts the purchase the card issuer will transfer the funds from their account to the merchant’s bank. The payment processor will then relay this response to the merchant’s website or PoS terminal and inform the customer that their payment was https://paymentprocessingtips.com/2019/06/12/payment-processing-services successful.
When choosing a processor, consider factors like security and user-friendliness, and compatibility with existing systems. Look for a solution that has APIs and plugins to seamlessly integrate with your ecommerce platform or POS system. Also, you should evaluate your customers’ checkout experience and your team’s reporting and transaction management experience. Not least, make sure you are aware of the contract and how easy it will be to change providers in the future.