If you’re a business that accepts credit and debit card transactions online, you should select the appropriate payment processor. An online payment processor is what handles the https://paymentprocessingtips.com/2021/09/01/best-data-visualization-tools/ heavy lifting of transactions — from capturing the sale to sending you a statement of payment and working with your bank to ensure that you get paid.
When a buyer purchases something on your site or in person at your brick-and mortar store, their credit or debit card information goes through a payment gateway or PoS terminal. The gateway secures the information to ensure its security and then sends it on to the payment processor, which then transmits it to the customer’s card network. The card network then checks with the bank of the customer to determine if they’ve enough money to pay for the item. If the bank agrees to the purchase, then the card issuer transfers money from the account to the merchant’s bank. The payment processor will then relay this response back to the merchant’s site or PoS terminal that will notify the customer that their payment was successful.
When selecting a processor, consider factors like security as well as ease of use and compatibility with other systems. Find a processor that offers APIs or plugins that seamlessly integrate with your ecommerce system or POS. Also, you should evaluate the customer experience at checkout and your team’s reporting and transaction management experience. Make sure you are aware of the contract terms and how easy it will be to switch providers in the future.