If you’re operating a business that accepts credit or debit card payments online, it is essential to choose the best payment processor. A payment processor online is responsible for the bulk of the transaction from recording a sale to sending you a billing statement and working with your bank to make sure that you’re paid.

If a customer purchases products on your website or in person at your brick and mortar store the credit or debit card data passes through a gateway for https://paymentprocessingtips.com/2019/11/15/security-and-payment-processing-services/ payments or PoS terminal. The gateway secures the information to protect it and sends it to a payment processor, who transmits it to the card network of the customer. The card network then contacts the bank of the customer to see if they have enough cash to purchase the item. If the bank accepts the purchase and the card issuer accepts it, they will transfer the funds from their account to the merchant’s bank. The payment processor will transmit this information to the merchant’s site or PoS terminal. This will notify the customer about the successful payment.

When selecting a processor, be sure to consider aspects like security, user-friendliness, as well as compatibility with existing systems. Choose 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 of your customers and your team’s reporting and management experience. Also, ensure that you are aware of the contract terms and how easy it will be to switch providers in the future.