It is essential to choose the correct payment processor if you own a business that takes credit and debit cards online. A payment processor online is responsible for the heavy lifting of transactions — from capturing a sale to sending you a billing statement and working with your bank to ensure that you’re paid.
When a customer buys products on your website or in person at a brick-and-mortar store the credit or debit card data goes through a payment gateway or PoS terminal. The gateway encrypts the data to ensure its https://paymentprocessingtips.com/2019/04/02/banks-are-to-issue-only-paypass-cards/ security and sends it to a payment processor, who then sends it to the card network of the customer. The card network then checks with the customer’s bank to determine if they’ve enough funds to pay for the item. If the bank accepts the purchase then the card issuer will transfer funds from the account to the merchant’s bank. The payment processor will then transmit this information back to the merchant’s site or PoS terminal and notify the client that their purchase was successful.
When selecting a processor, consider factors like security as well as ease of use and compatibility with existing systems. Select a processor that offers APIs and plugins to seamlessly integrate with your ecommerce platform or the POS system. You should also assess your customers’ experience when they shop and your team’s reporting and management experience. Finally, make sure you understand the contract terms and how easy it will be to change providers in the future.
