You need to select the right payment processor if you run a business accepting credit and debit cards online. Online payment processors take care of all the work, from capturing sales to sending you a statement of your bill and working with your banks to ensure that you are paid.
Payment gateways or PoS terminals are used when a customer buys something from your site or in-store. The gateway encrypts the data to protect it and then sends it on to the payment processor which then transmits it to the card network of the customer. The card network checks with the customer’s bank to determine if there is enough money in the account to pay for the product. If the bank approves the purchase, the card issuer will transfer funds from their account to the merchant’s bank. The processor for payment will relay this response to the merchant’s website or PoS terminal and notify the customer that their transaction was successful.
When choosing a processor, consider factors like security and ease of use and compatibility with the existing systems. Look for a solution that has APIs and plugins to seamlessly integrate with your ecommerce platform or the POS system. You should also look at the checkout experience of your customers and the reporting and management experience for your staff. Make sure you are aware of the contract terms and how easy it will be to change providers in the future.