You need to select the right payment processor if you run a business accepting debit and credit cards online. Online payment processors handle all the heavy lifting, from recording sales to sending you a bill statement and collaborating with banks to make sure you get paid.
When a buyer purchases something on your website or in person at your brick and mortar store, their credit or debit card information passes through a gateway for payments or PoS terminal. The gateway encodes data to ensure its security. It sends it to a payment processor, who then sends it to the card network of the customer. The card network then checks with the bank of the customer to determine if they’ve enough money to purchase the item. If the bank is able to approve the purchase, the card issuer will transfer the funds from their account to the merchant’s bank. The payment processor will then transmit this information back to the merchant’s site or PoS terminal that will notify the customer that their transaction was successful.
When selecting a processor, take into account factors like security, user-friendliness, as well as compatibility with current systems. Look for a processor that has APIs or plugins that can seamlessly integrate with your ecommerce system or POS. You should also consider the checkout experience of your customers as well as the reporting and transaction management experiences for your team. Also, ensure that you understand the contract terms and how easy it will be https://paymentprocessingtips.com/2019/12/22/payment-company-today to change suppliers in the future.
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