If you’re operating a business that accepts credit and debit card payments online, you should select the most suitable payment processor. An online payment processor will handle the bulk of the transaction — from capturing a sale to sending you a statement of billing and working with your bank to ensure you are paid.
If a customer purchases products on your website or in person at your brick-and mortar store the credit or debit card details passes through a gateway for payments or PoS terminal. The gateway encrypts the data to ensure its security and sends it to a processor that then transfers it to the card network of the customer. The card network checks with the customer’s bank to determine if there is enough funds in the account to purchase the item. If the bank approves the purchase, the card issuer will transfer funds from their account to the bank of the merchant. The payment processor will then relay this message to the merchant’s site or PoS terminal. This will notify the client of the successful payment.
When choosing a processor consider factors such as security, user-friendliness, as well as compatibility with existing systems. Make sure you choose a processor which includes APIs or plugins which seamlessly integrate with your ecommerce system or POS. You should also assess the checkout experience of your customers and your team’s transaction management and reporting experience. Not least, ensure you know the terms of your contract and how it is possible to switch providers in the future.
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