If you’re a business that accepts credit or debit card payments online, you need to choose the right payment processor. Payment processors online do all the work, from capturing sales to sending you a bill statement and collaborating with banks to ensure you get paid.
Payment gateways or PoS terminals are used when a buyer buys something from your site or in-store. The gateway secures the information to protect it and sends it to a payment processor, who then sends it to the card network of the customer. The card network then checks with the customer’s bank to determine if they have enough funds to pay for the item. If the bank is able to approve the purchase then the card issuer transfers money from the account to the merchant’s bank. The payment processor will transmit this response to the merchant site or PoS terminal. This will inform the customer of their successful payment.
When choosing a processor consider factors such as security, user-friendliness, and compatibility with current systems. Look for a processor that provides APIs or plugins that seamlessly integrate with your e-commerce system or POS. You should also evaluate your customers’ checkout experience and your team’s transaction management and reporting experience. Finally, make sure you understand the contract terms and how easy it will be to switch suppliers in the future.