If you’re running a business that accepts credit and debit card payments online, you must select the right payment processor. A payment processor online will handle the transactional heavy lifting from recording an order to delivering you a statement of billing and working with your bank to make sure you get paid.

Payment gateways or PoS terminals are used when a consumer buys something from your site or in-store. The gateway is able to encrypt the data to keep it secure and then forwards it to the payment processor, which then transmits it to the customer’s card network. The card network checks with the customer’s bank to determine if there’s enough money in the account to purchase the product. If the bank is able to approve the purchase and the card issuer accepts it, they will transfer the funds from their account to the bank of the merchant. The payment processor will transmit this information to the merchant’s website or PoS terminal and inform the customer that the transaction was successful.

When choosing a processor, consider aspects like security, ease of use, and compatibility with existing systems. Look for a processor that has APIs or plugins that seamlessly integrate with an ecommerce system or POS. You should also look at the checkout experience of your customers, as well as the reporting and transaction management experience for your staff. Not least, ensure you know the terms of your contract best data visualization tools and how it is possible to change providers in the future.