If you’re a company that accepts credit or debit card payments online, you need to choose the appropriate payment processor. A payment processor online is what handles the transactional burden from recording the sale to sending you a statement of billing and working with your bank to ensure you are paid.
When a consumer purchases something from your website or in person at your brick-and-mortar store the credit or debit card information passes through a gateway for payments or PoS terminal. The gateway encodes data to ensure its security. It sends it to a processor that then transfers 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 funds to pay for the item. If the bank approves of the purchase, then the card issuer transfers money from the account to the merchant’s bank. The processor for payment will transmit this information back to the merchant’s site or PoS terminal and inform the customer that their payment was successful.
When selecting a processor, think about aspects like security, user-friendliness, and compatibility with the current systems. Choose a processor that includes APIs or plugins which can seamlessly integrate with your ecommerce system or POS. You should also assess the checkout experience of your customers and your team’s reporting and management experience. Make sure you are familiar with the contract terms and how easy it is to change suppliers in the future.
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