Choosing an Online Payment Processor

https://paymentprocessingtips.com/2021/07/08/generated-post-2

You need to select the right payment processor if you run a business accepting credit and debit cards online. Online payment processors do all the difficult tasks, from capturing sales to sending you a bill statement and working with your banks to ensure you get paid.

When a consumer purchases something on your site or in person at your brick-and-mortar store the credit or debit card data passes through a gateway for payments or PoS terminal. The gateway encodes data to protect it and transmits it to the payment processor who then transmits it to the card network of the customer. The card network then examines the bank account of the customer to determine if they have enough funds to pay for the item. If the bank accepts the purchase the card issuer will transfer funds from their account to the bank that is owned by the merchant. The processor for payment will transmit this information back to the merchant’s site or PoS terminal and notify the client that their purchase was successful.

When selecting a processor consider factors like security, user-friendliness, and compatibility with the current systems. Find a solution that offers APIs and plugins to seamlessly integrate with your ecommerce platform or POS system. You should also assess the customer experience at checkout and your team’s reporting and transaction management experience. Not least, ensure you know the terms of your contract and how easy it will be to switch providers in the future.