You need to select the right payment processor when you run a business accepting credit and debit cards online. A payment processor online is the one that handles the transactional heavy lifting — from capturing the sale to sending you a statement of payment and working with your bank to make sure you get paid.

If a customer purchases products on your website or in person at a brick-and-mortar store their credit or debit card data goes through a payment gateway or PoS terminal. The gateway is able to encrypt the data to secure it, and then sends it on to the payment processor, which then transmits it to the customer’s card network. The card network checks with the client’s bank to determine if there is enough money in the account to cover the item. If the bank accepts the purchase, then the card issuer transfers funds from the account to the merchant’s bank. The processor for payment will transmit this information to the merchant’s website or PoS terminal and inform the customer that their transaction was successful.

When choosing a processor be sure to consider aspects like security, ease-of-use, and compatibility with the current systems. Choose a processor that includes APIs or plugins which seamlessly integrate with an ecommerce system or POS. You should also evaluate the checkout experience of your customers, as well as the reporting and management options for your team. Last but not least, ensure you know the terms of your contract and how it is possible to change providers in the future.

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