It is essential to choose the correct payment processor if you operate a business that accepts debit and credit cards online. An online payment processor is what handles the transactional heavy lifting from capturing the sale, to sending you a billing statement and working with your bank to ensure you get paid.
Payment gateways or PoS terminals are used when a consumer purchases something on your website or in-store. The gateway encodes data to ensure its security. It sends it to the processor that then transfers it to the card network of the customer. The card network checks with the customer’s bank to determine if there’s enough funds in the account to purchase 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 relay this response to the merchant’s site or PoS terminal. This will notify the customer about the successful payment.
When selecting a processor take into account aspects like security, ease-of-use, and compatibility with the current systems. Choose a processor that includes APIs or plugins which seamlessly integrate with your ecommerce system or POS. Also, you should evaluate the checkout experience of your customers and your team’s reporting and transaction management experience. Not least, make sure you are aware of the contract and how it is easy to switch providers in the future.