You must choose the right payment processor if you operate a business that accepts debit and credit cards online. An online payment processor is what handles the transactional heavy lifting from capturing the sale to sending you a bill statement and working with your bank to ensure that you’re paid.

Payment gateways or PoS terminals are used when a buyer purchases something from your website or in-store. The gateway encrypts data to ensure its security and sends it to a payment processor, who then sends it to the card network of the customer. The card network then contacts the bank of the customer to determine if they have enough funds to pay for the item. If the bank is able to approve the purchase then the card issuer transfers funds from the account to the https://paymentprocessingtips.com/2019/07/10/payment-processing-and-earning-opportunities merchant’s bank. The processor for payment will relay this information to the merchant’s website or PoS terminal. This will notify the customer about the successful payment.

When selecting a processor, be sure to consider security and user-friendliness, and compatibility with the existing systems. Find a processor that offers APIs or plugins that seamlessly integrate with your e-commerce system or POS. 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 understand the contract terms and how easy it will be to change providers in the future.