If you’re a company that accepts credit or debit card transactions online, you must select the right payment processor. Online payment processors handle all the heavy lifting, from capturing sales to sending you a statement of your bill and collaborating with banks to ensure that you are paid.
When a customer buys something on your website or in person at your brick-and-mortar store, their credit or debit card information is processed by a payment gateway or PoS terminal. The gateway encrypts the data to ensure its security and sends it to a payment processor who then transmits it to the card network of the customer. The card network checks with the customer’s bank to determine if there is enough money in the account to pay for the product. If the bank accepts the purchase then the card issuer will transfer funds 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 of the successful payment.
When choosing a processor take into consideration security, ease of use, and compatibility with the existing systems. Look for a solution that provides APIs and plug-ins to seamlessly integrate with your ecommerce platform or POS system. Also, you should evaluate your customers’ experience when they shop and your team’s transaction management and reporting experience. Don’t forget to ensure you know the terms of your contract and how it is easy to switch providers in the future.
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