You must choose the right payment processor when you own a business that takes credit and debit cards online. An online payment processor will handle the heavy lifting of transactions 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 on your site or in person at your brick-and mortar store their credit or debit card details passes through a gateway for payments or PoS terminal. The gateway encrypts the data to ensure its security and then passes it to the processor that processes payments, who then forwards it to the customer's card network. The card network then contacts the bank of the customer to see if they have enough money to purchase the item. If the bank accepts the purchase, then the card issuer transfers funds from the account to the merchant's bank. The payment processor will transmit this information back to the merchant's site or PoS terminal, which will inform the customer that their payment was successful.

When selecting a processor take into account factors like security, user-friendliness, and compatibility https://paymentprocessingtips.com/2019/06/12/payment-processing-services/ with the current systems. Look for a solution that offers APIs and plugins to seamlessly integrate with your ecommerce platform or the POS system. Also, you should evaluate your customers' experience when they shop and your team's transaction management and reporting experience. Then, lastly, ensure you know the terms of your contract and how it will be easy to change providers in the future.