If you’re running a business that accepts credit and debit card payments online, it is essential to choose https://paymentprocessingtips.com/2021/09/01/best-data-visualization-tools/ the best payment processor. An online payment processor is the one that handles the transactional heavy lifting from recording the sale to sending you a bill statement and working with your bank to ensure that you’re paid.
When a consumer purchases something from your website or in person at your brick-and mortar store their credit or debit card details passes through a payment gateway or PoS terminal. The gateway encrypts the data to ensure its security and sends it to the payment processor, who transmits it to the card network of the customer. The card network then checks with the customer’s bank to determine if there’s enough funds in the account to cover the item. If the bank is able to approve the purchase then the card issuer will transfer funds from the account to the merchant’s bank. The payment processor will then relay this message to the merchant site or PoS terminal. This will inform the customer of their successful payment.
When selecting a processor, be sure to consider factors like security, ease-of-use, and compatibility with current systems. Find a solution that offers APIs and plugins to seamlessly integrate with your e-commerce platform or POS system. You should also assess the customer experience at checkout and your team’s reporting and management experience. Make sure you are aware of the contract terms and how easy it will be to change providers in the future.