You should choose the correct payment processor if you have a business that accepts debit and credit cards online. A payment processor online will handle the transactional heavy lifting from capturing the sale, to sending you a statement of payment and working with your bank to ensure that you’re paid.
If a customer purchases something on your site or in person at your brick-and mortar store their credit or debit card information goes through a payment gateway or PoS terminal. The gateway secures the information to secure it, and then sends it on to the processor that processes payments, which in turn, transmits it to card network of the customer. The card network then contacts the bank of the customer to determine if they’ve enough cash to purchase the item. If the bank is able to approve the purchase, then the card issuer will transfer funds from the account to the merchant’s bank. The payment processor will relay this message to the merchant’s site or PoS terminal. This will inform the customer of the successful payment.
When choosing a processor, be sure to consider factors such as security, user-friendliness, as well as compatibility with current systems. Find a processor that includes APIs or plugins which can seamlessly integrate with your ecommerce system or POS. You should also assess your customers’ checkout experience and your team’s report and transaction management experience. Finally, make sure you are familiar with the contract terms and how easy it is to switch suppliers in the future.
