Choosing an Online Payment Processor

If you’re running a business that accepts credit or debit card payments online, you must select the best payment processor. Payment processors online do all the work, from capturing sales to sending you a statement of your bill and collaborating with banks to make sure you get paid.

Payment gateways or PoS terminals are used when a buyer purchases something from your website or in-store. The gateway encrypts visit the site the information to keep it secure and then sends it on to the processor that processes payments, who then forwards 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 product. If the bank is able to approve the purchase the card issuer will transfer funds from their account to the bank of the merchant. The payment processor will then relay this message to the merchant’s website or PoS terminal. This will notify the client of the successful payment.

When choosing a processor consider factors such as security, ease of use, and compatibility with current systems. Find a processor that offers APIs or plugins that can seamlessly integrate with your ecommerce system or POS. Also, you should consider the checkout experience of your customers, as well as the reporting and transaction management experiences for your team. Also, ensure that you understand the contract terms and how easy it will be to switch providers in the future.