Choosing an Online Payment Processor Leave a comment
If you’re running a business that accepts credit and debit card transactions online, it is essential to choose the most suitable payment processor. Online payment processors do all the difficult tasks, from capturing sales to sending you a statement of your bill and collaborating with banks to ensure that you are paid.
Payment gateways or PoS terminals are used when a customer buys something from your site or in-store. The gateway encodes data to ensure its security and sends it to the payment processor, who then sends it to the card network of the customer. The card network then contacts the bank of the customer to see if they have enough cash to purchase the item. If the bank approves of the purchase, then the card issuer transfers funds from the account to the merchant’s bank. The payment processor will relay this message to the merchant site or PoS terminal. This will inform the customer about the successful payment.
When choosing a processor, think about security, ease of use, and compatibility with existing systems. Make sure you choose a processor which includes APIs or plugins which seamlessly integrate with an ecommerce system or POS. You should also evaluate the checkout experience of your customers, as well as the reporting and transaction management capabilities for your employees. Finally, make sure you understand the contract terms and how easy it will be to switch suppliers in the future.