If you’re a business that accepts credit and debit card transactions online, you need to choose the most suitable payment processor. A payment processor online is what handles the transactional heavy lifting — from capturing the sale to sending you a statement of billing and working with your bank to make sure you get paid.
When a consumer purchases something on your website or in person at your brick and mortar store their credit or debit card information is processed by a payment gateway or PoS terminal. The gateway encrypts the data to ensure its security and then transmits it to the processor that processes payments, which in turn, transmits it to customer’s card network. The card network checks with the customer’s bank to determine if there’s enough money in the account to purchase the item. If the bank accepts the purchase then the card issuer transfers money from the account to the merchant’s bank. The payment processor will then transmit this information to the merchant’s website or PoS terminal, which will inform the customer that their payment was successful.
When selecting a processor, consider factors like security and ease of use and compatibility with other systems. Select a processor with 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 transaction management and reporting experience. Last but not least, ensure you understand the contract and how it is easy to change providers in the future.
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