You must choose the right payment processor if you run a business accepting debit and credit cards online. A payment processor online is the one that handles the transactional burden from recording the sale, to sending you a statement of payment and working with your bank to ensure that you get paid.
Payment gateways or PoS terminals are used when a customer purchases something from your website or in-store. The gateway encrypts the data to ensure its security and sends it to the payment processor who then transmits it to the card network of the customer. The card network then examines the bank account of the customer to determine if they’ve enough money to pay for the item. If the bank accepts the purchase the card issuer will transfer funds from their account to the bank of the merchant. The payment processor will relay this response back to the merchant’s website or PoS terminal and notify the customer that their payment was successful.
When selecting a processor be sure to consider factors like security, user-friendliness, as well as compatibility with existing systems. Find a solution with APIs and plugins to seamlessly integrate with your ecommerce platform or the POS system. You should also consider the checkout experience for your customers and the reporting and transaction management options for your team. Then, lastly, ensure that you understand the terms of the contract and how it is easy to switch providers in the future.