It is essential to choose the correct payment processor if you have a business that accepts debit and credit cards online. A payment processor online is what handles the transactional heavy lifting from recording an order to delivering you a billing statement and working with your bank to ensure you are paid.
Payment gateways or PoS terminals are used when a customer purchases something from your website or in-store. The gateway encrypts the data 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 checks with the customer’s bank to determine if there’s enough funds in the account 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 back to the merchant’s site or PoS terminal and notify the customer that the transaction was successful.
When selecting a processor, be sure to consider aspects like security, user-friendliness, as well as compatibility with existing systems. Find a processor that offers APIs or plugins that seamlessly integrate with an ecommerce system or POS. You should also evaluate the checkout experience of your customers, as well as the reporting and transaction management capabilities for your employees. Last but not least, ensure that you understand the terms of the contract and how it is possible to change providers in the future.