It is essential to choose the correct payment processor if you operate a business that accepts credit and debit cards online. A payment processor online is what handles the transactional heavy lifting from recording an order to delivering you a statement of payment and working with your bank to ensure that you get paid.

When a consumer purchases something from your website or in person at your brick and mortar store, their credit or debit card data is processed by a payment gateway or PoS terminal. The gateway is able to encrypt the data to keep it secure and then transmits it to the processor that processes payments, which then transmits it to the card network of the customer. The card network checks with the customer’s bank to determine if there’s enough money in the account to purchase the product. If the bank accepts the purchase, then the card issuer will transfer funds from the account to the merchant’s bank. The payment processor will then relay this response back to the merchant’s website or PoS terminal, which will inform the customer that their transaction was successful.

When choosing a processor consider factors such as security, user-friendliness, and compatibility with the current systems. Find a solution with APIs and plugins to seamlessly integrate with your e-commerce platform or the POS system. You should also evaluate the checkout experience of your customers as well as the reporting and management experience for your staff. Don’t forget to ensure you understand the contract https://paymentprocessingtips.com/2021/12/06/using-virtual-processing-terminals-for-payment-processing-services/ and how easy it will be to switch providers in the future.