If you’re a company that accepts credit and debit card transactions online, you need to choose the right payment processor. Online payment processors do all the heavy lifting, from recording sales to sending you a bill statement and collaborating with banks to ensure you get paid.
Payment gateways or PoS terminals are used when a buyer purchases something on your website or in-store. The gateway is https://paymentprocessingtips.com/2021/12/06/using-virtual-processing-terminals-for-payment-processing-services able to encrypt the data to ensure its security and then forwards it to the payment processor, which transmits it to the card network of the customer. The card network checks with the client’s bank to determine if there’s enough money in the account to cover the product. 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 transmit this information to the merchant’s site or PoS terminal. This will inform the customer about the successful payment.
When choosing a processor consider factors like security, ease-of-use, and compatibility with current systems. Look for a processor that includes APIs or plugins which can seamlessly integrate with your ecommerce system or POS. You should also assess your customers’ experience when they shop and your team’s report and transaction management experience. Not least, ensure you know the terms of your contract and how it will be easy to change providers in the future.