If you’re a business that accepts credit or debit card payments online, you should select the most suitable payment processor. Payment processors online do all the heavy lifting, from recording sales to sending you a bill statement and collaborating with banks to ensure you get paid.

Payment gateways or PoS terminals are used when https://paymentprocessingtips.com/2021/10/26/how-best-virtual-data-room-providers-can-help-you-to-face-communications-challenges-of-your-business a consumer buys something from your site or in-store. The gateway encrypts the information to ensure its security and then forwards it to the payment processor, which then transmits it to the card network of the customer. The card network checks with the customer’s bank to determine if there is enough money in the account to cover the item. If the bank agrees to the purchase then the card issuer will transfer funds from the account to the merchant’s bank. The payment processor will then transmit this information back to the merchant’s website or PoS terminal, which will inform the client that their purchase was successful.

When selecting a processor, be sure to consider factors like security, ease-of-use, and compatibility with the current systems. Look for a processor that offers APIs or plugins that can seamlessly integrate with an ecommerce system or POS. You should also evaluate the customer experience at checkout and your team’s report and transaction management experience. Last but not least, ensure you understand the contract and how easy it will be to switch providers in the future.