If you’re operating a business that accepts credit or debit card transactions online, you must choose the most suitable payment processor. An online payment processor is the one that handles the heavy lifting of transactions from recording the sale, to sending you a statement of payment and working with your bank to make sure that you get paid.
If a customer purchases something from your website or in person at your brick and mortar store their credit or debit card information passes through a gateway for payments or PoS terminal. The gateway secures the information to protect it and transmits it to the payment processor, who transmits it to the card network of the customer. The card network then examines the bank account of the customer to see if they have enough cash to purchase the item. If the bank approves the purchase the card issuer will transfer the funds from their account to the bank of the merchant. The payment processor will transmit this information to the merchant’s website or PoS terminal and inform the customer that the transaction was successful.
When selecting a processor, take into account factors such as security, user-friendliness, as well as compatibility with current systems. Find a processor that provides APIs or plugins that can seamlessly integrate with an ecommerce system or POS. You should also evaluate the checkout experience of your customers, as well as the reporting and management options for your team. Last but not least, ensure that you understand the terms of the contract and how easy it will be to switch providers in the future.