If you’re a business that accepts credit or debit card payments online, it is essential to choose the appropriate payment processor. Payment processors online do all the heavy lifting, from recording sales to sending you a statement of your bill and working with your banks to ensure that you are paid.
Payment gateways or PoS terminals are used when a buyer purchases something on your website or in-store. The gateway encrypts data to protect it and sends it to a payment processor who then transmits it to the card network of the customer. The card network checks with the customer’s bank to determine if there’s enough money in the account to purchase the item. If the bank approves 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 then relay discover this this information to the merchant site or PoS terminal. This will notify the customer of the successful payment.
When selecting a processor, think about security as well as ease of use and compatibility with existing systems. Find a solution with APIs and plugins to seamlessly integrate with your e-commerce platform or POS system. You should also assess the customer experience at checkout and your team’s reporting and management experience. In the end, make sure you are aware of the contract terms and how easy it is to change providers in the future.