Choosing an Online Payment Processor

If you’re running a business that accepts credit or debit card transactions online, you must choose the best payment processor. An online payment processor is the one that handles the transactional burden from capturing an order to delivering you a bill 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 secures the information to secure it, and then transmits it to the processor that processes payments, who then forwards it to the card network of the customer. The card network then checks with check the bank of the customer to determine if they have enough money to pay for the item. If the bank approves of the purchase then the card issuer will transfer funds from the account to the merchant’s bank. The payment processor will transmit this response to the merchant site or PoS terminal. This will inform the client of the successful payment.

When choosing a processor consider factors like security as well as ease of use and compatibility with other systems. Select a processor that offers APIs and plugins to seamlessly integrate with your ecommerce platform or POS system. You should also look at the checkout experience for your customers, as well as the reporting and transaction management options for your team. Then, lastly, ensure you know the terms of your contract and how it is easy to switch providers in the future.

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