If you’re a company that accepts credit or debit card payments online, you must select the right payment processor. An online payment processor is the one that handles the bulk of the transaction from capturing the sale, to sending you a billing statement and working with your bank to ensure you get paid.
Payment gateways or PoS terminals are used when a buyer purchases something from your website or in-store. The gateway encrypts the data to keep it secure and then sends it on to the processor that processes payments, who then forwards it to the customer’s card network. The card network checks with the customer’s bank to determine if there’s enough funds in the account to cover the product. If the bank is able to approve the purchase, the card issuer will transfer the funds from their account to the bank of the merchant. The payment processor will relay this response back to the merchant’s site or PoS terminal and notify the customer that the transaction was successful.
When choosing a processor, be sure to consider security, ease of use, and compatibility with the existing systems. Find a solution that provides APIs and plug-ins to seamlessly integrate with your e-commerce platform or POS system. You should also look at the checkout experience for your customers as well as the reporting and management experience for your staff. Last but not least, make sure you are aware of the contract and how it is possible to switch providers in the future.
Choosing an Online Payment Processor
If you’re a company that accepts credit or debit card payments online, you must select the right payment processor. An online payment processor is the one that handles the bulk of the transaction from capturing the sale, to sending you a billing statement and working with your bank to ensure you get paid.
Payment gateways or PoS terminals are used when a buyer purchases something from your website or in-store. The gateway encrypts the data to keep it secure and then sends it on to the processor that processes payments, who then forwards it to the customer’s card network. The card network checks with the customer’s bank to determine if there’s enough funds in the account to cover the product. If the bank is able to approve the purchase, the card issuer will transfer the funds from their account to the bank of the merchant. The payment processor will relay this response back to the merchant’s site or PoS terminal and notify the customer that the transaction was successful.
When choosing a processor, be sure to consider security, ease of use, and compatibility with the existing systems. Find a solution that provides APIs and plug-ins to seamlessly integrate with your e-commerce platform or POS system. You should also look at the checkout experience for your customers as well as the reporting and management experience for your staff. Last but not least, make sure you are aware of the contract and how it is possible to switch providers in the future.
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