Choosing an Online Payment Processor

Choosing an Online Payment Processor

You should choose the right payment processor when you have a business that accepts debit and credit cards online. Online payment processors take care of all the work, from capturing sales to sending you a bill statement and collaborating with banks to ensure that you are paid.

Payment gateways or PoS terminals are used when a consumer purchases something on your website or in-store. The gateway secures the information to ensure its security and then sends it on to the payment processor which in turn, transmits it to card network of the customer. The card network checks with the client’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 then the card issuer will transfer the funds from their account to the merchant’s bank. The payment processor will transmit this response to the merchant’s site or PoS terminal. This will notify the customer about the successful payment.

When choosing a processor take into consideration security as well as ease of use and compatibility with existing systems. Look for a solution that offers APIs and plugins to seamlessly integrate with your ecommerce platform or POS system. You should also evaluate the customer experience at checkout and your team’s reporting and management experience. Last but not least, make sure you are aware of the contract and how it will be easy to change providers in the future.

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