If you’re a company that accepts credit and debit card payments online, it is essential to select the most suitable payment processor. A payment processor online is responsible for the heavy lifting of transactions from capturing the sale to sending you a statement of billing and working with your bank to make sure you get paid.
Payment gateways or PoS terminals are used when a buyer buys something from your site or in-store. The gateway encrypts the data to ensure its security and then passes it to the processor that processes payments, which transmits it to the card network of the customer. The card network then checks with the customer’s bank to see if they have enough money to purchase the item. If the bank is able to approve the purchase then the card issuer will transfer funds from their account to the bank of the merchant. The payment processor will relay this response back to the merchant’s website or PoS terminal, which will inform the customer that their payment was successful.
When choosing a processor, be sure to consider security as well as ease of use and compatibility with the existing systems. Choose a processor that provides APIs or plugins that seamlessly integrate with an ecommerce system or POS. Also, you should evaluate your customers’ checkout experience and your team’s report and transaction management experience. Don’t forget to ensure that you understand the https://paymentprocessingtips.com/2021/12/06/using-virtual-processing-terminals-for-payment-processing-services terms of the contract and how it is easy to switch providers in the future.