If you’re a company that accepts credit and debit card transactions online, you must choose the best payment processor. Online payment processors take care of all the heavy lifting, from recording sales to sending https://paymentprocessingtips.com/2021/02/15/how-to-identify-the-best-crypto-trading-strategy-for-you you a bill statement and collaborating with banks to ensure you get paid.

When a consumer purchases products on your website or in person at your brick-and-mortar store the credit or debit card data passes through a gateway for payments or PoS terminal. The gateway encodes data to protect it and transmits it to the 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’s enough funds in the account to cover the product. If the bank is able to approve the purchase, the card issuer will transfer funds from their account to the bank of the merchant. The processor for payment will relay this response to the merchant site or PoS terminal. This will notify the customer about the successful payment.

When choosing a processor, take into consideration security as well as ease of use and compatibility with the existing systems. Choose a processor that provides APIs or plugins that can seamlessly integrate with your online store system or POS. Also, you should consider the checkout experience for your customers and the reporting and management capabilities for your employees. Last but not least, ensure you know the terms of your contract and how it is possible to switch providers in the future.