You should choose the correct payment processor if you https://paymentprocessingtips.com/2021/12/06/3-reasons-to-invest-in-payment-processing-services own a business that takes credit and debit cards online. A payment processor online will handle the bulk of the transaction — from capturing a sale to sending you a bill statement and working with your bank to make sure that you’re paid.

If a customer purchases something from your website or in person at your brick-and-mortar store their credit or debit card details is processed by a payment gateway or PoS terminal. The gateway encodes data to protect it and sends it to the payment processor who then transmits it to the card network of the customer. The card network checks with the client’s bank to determine if there is enough money in the account to cover the product. If the bank is able to approve the purchase then the card issuer will transfer funds from their account to the bank that is owned by the merchant. The payment processor will transmit this information to the merchant’s site or PoS terminal. This will inform the client of the successful payment.

When choosing a processor consider factors like security as well as ease of use and compatibility with existing systems. Select a processor that provides APIs and plug-ins to seamlessly integrate with your e-commerce platform or the POS system. You should also consider the checkout experience of your customers and the reporting and transaction management capabilities for your employees. Make sure you are familiar with the contract terms and how easy it will be to switch providers in the future.