If you’re operating a business that accepts credit and debit card transactions online, it is https://paymentprocessingtips.com/2021/03/26/virtual-processing-terminal essential to select the right payment processor. A payment processor online is the one that handles the bulk of the transaction that includes everything from capturing the sale to sending you a statement of billing and working with your bank to ensure that you’re paid.
When a customer buys something on your site or in person at your brick-and-mortar store their credit or debit card data passes through a gateway for payments or PoS terminal. The gateway encrypts the data to secure it, and then sends it on to the payment processor, who then forwards it to the customer’s card network. The card network then contacts the bank of the customer to determine if they have enough money to purchase the item. If the bank is able to approve the purchase, then the card issuer will transfer funds from the account to the merchant’s bank. The payment processor will transmit this information to the merchant’s site or PoS terminal. This will notify the customer of the successful payment.
When selecting a processor think about factors like security, ease of use, and compatibility with existing systems. Find a solution that provides APIs and plug-ins to seamlessly integrate with your e-commerce platform or the POS system. You should also evaluate your customers’ checkout experience and your team’s transaction management and reporting experience. Not least, ensure you know the terms of your contract and how it is easy to switch providers in the future.