If you’re running a business that accepts credit and debit card transactions online, you must choose the right payment processor. Payment processors online do all the heavy lifting, from capturing sales to sending you a statement of your bill and collaborating with banks to ensure you get paid.
When a consumer purchases products on your website or in person at a brick-and-mortar store their credit or debit card information passes through a payment gateway or PoS terminal. The gateway is able to encrypt the data to protect it and then sends it on to the payment processor, which then transmits it to the customer’s card network. The card network checks with the client’s bank to determine if there’s enough funds in the account to cover the product. If the bank approves the purchase then the card issuer will transfer funds from their account to the merchant’s bank. The processor for payment will visit the site transmit this information back to the merchant’s website or PoS terminal, which will inform the customer that their transaction was successful.
When selecting a processor, take into consideration security as well as ease of use and compatibility with other systems. Choose a processor that includes APIs or plugins which can seamlessly integrate with an ecommerce system or POS. You should also look at the checkout experience for your customers, as well as the reporting and management options for your team. Not least, ensure you understand the contract and how it will be easy to change providers in the future.
