You should choose the correct payment processor if you run a business accepting credit and debit cards online. Online payment processors handle all the work, from capturing sales to sending you a statement of your bill and collaborating with banks to make sure you get paid.

When a customer buys something from your website or in person at a brick-and-mortar store, their credit or debit card details goes through a payment gateway or PoS terminal. The gateway encodes data to protect it and transmits it to the processor that then transfers it to the card payment company today network of the customer. The card network then checks with the bank of the customer to determine if they’ve enough funds to pay for 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 website or PoS terminal and notify the customer that their transaction was successful.

When choosing a processor think about security and user-friendliness, and compatibility with the existing systems. Choose a processor that provides APIs and plug-ins to seamlessly integrate with your ecommerce platform or POS system. You should also consider the checkout experience for your customers, as well as the reporting and transaction management options for your team. Then, lastly, ensure that you understand the terms of the contract and how it will be easy to change providers in the future.