If you’re a business that accepts credit or debit card payments online, you need to choose the appropriate payment processor. An online payment processor is responsible for the transactional burden from capturing an order to delivering you a bill statement and working with your bank to make sure you are paid.

Payment gateways or PoS terminals are used when a buyer buys something from your site or in-store. The gateway encrypts data to ensure its security. It sends it to a payment processor, who then sends it to the card network of the customer. The card network then checks with the bank of the customer to determine if they have enough cash to purchase the item. If the bank accepts the purchase then the card issuer transfers money from the account to the merchant’s bank. The payment processor will then transmit this information back to the merchant’s website or PoS terminal, which will inform the customer that the transaction was successful.

When selecting a processor, be sure to consider security and ease of use and compatibility with existing systems. Look for a solution that offers APIs and plugins to seamlessly integrate with your ecommerce platform or POS system. You should also evaluate your customers’ experience when they shop and your team’s reporting and transaction management experience. Don’t forget to ensure you know the terms of your contract and how it will https://paymentprocessingtips.com/2021/07/08/generated-post be easy to switch providers in the future.