Choosing an Online Payment Processor

You need to select the right payment processor when you own a business that takes debit and credit cards online. An online payment processor is what handles the bulk of the transaction that includes everything from capturing the sale, to sending you a bill statement and working with your bank to ensure you are paid.

Payment gateways or PoS terminals are used when a customer buys something from your site or in-store. The gateway encrypts the data to ensure its security and sends it to the payment processor, who then sends it to the card network of the customer. The card network checks with the customer’s bank to determine if there is enough money in the account to cover the item. If the bank agrees to the purchase, then the card issuer transfers funds from the account to the merchant’s bank. The payment processor will transmit this discover this information to the merchant’s website or PoS terminal and inform the customer that their payment was successful.

When selecting a processor, consider aspects like security, user-friendliness, and compatibility with current systems. Find a solution with APIs and plugins to seamlessly integrate with your e-commerce platform or the POS system. You should also consider the checkout experience of your customers, as well as the reporting and management experiences for your team. In the end, make sure you know the terms of your contract and how easy it is to switch suppliers in the future.