Choosing an Online Payment Processor

If you’re a company that accepts credit or debit card transactions online, you need to select the right payment processor. Payment processors online do all the work, from capturing sales to sending you a bill statement and working with your banks to ensure that you are paid.

Payment gateways or PoS terminals are used when a client buys something from your site or in-store. The gateway encodes data to protect it and sends it to the payment processor, who transmits it to the card network of the customer. The card network checks with the customer’s bank to determine if there’s enough funds in the account to purchase the item. If the bank accepts the purchase, the card issuer will transfer the funds from their account to the bank that is owned by the merchant. The payment processor will then relay this information to the merchant site or PoS terminal. This will notify the customer about the successful payment.

When choosing a processor take into account aspects like security, ease-of-use, and compatibility with the current systems. Find a processor that provides APIs or plugins that seamlessly integrate with your ecommerce system or POS. You should also consider the checkout experience published here of your customers and the reporting and management capabilities for your employees. Last but not least, ensure you understand the contract and how it will be easy to change providers in the future.

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