If you're a company that accepts credit and debit card payments online, you need to select the appropriate payment processor. A payment processor online is what handles the transactional heavy lifting from recording the sale to sending you a billing statement and working with your bank to make sure that you get paid.

When a consumer purchases something from your website or in person at your brick and mortar store, their credit or debit card data passes through a payment gateway or PoS terminal. The gateway encrypts the information to secure it, and then transmits it to the processor that processes payments, which in turn, transmits it to customer's card network. The card network then examines the bank account of the customer to determine if they have 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 https://paymentprocessingtips.com/about-paymentprocessingtips-com/ to the merchant's bank. The payment processor will transmit this message to the merchant site or PoS terminal. This will notify the customer of the successful payment.

When choosing a processor, consider factors such as security, user-friendliness, as well as compatibility with current systems. Make sure you choose a processor which offers APIs or plugins that seamlessly integrate with your e-commerce system or POS. Also, you should evaluate the customer experience at checkout and your team's report and transaction management experience. Also, ensure that you know the terms of your contract and how easy it will be to switch providers in the future.