Choosing an Online Payment Processor

It is important to do extensive research and analysis before making a decision on an online payment processor. The right payment processor should provide the payment options that your customers use, and provide options to safeguard against fraud and chargebacks. Our editors have studied and rated top-performing products according to their features, coverage options and customer experience. They also considered costs as well as customizability, among other aspects.

A business will need an account for merchants, a payment gateway, and processor to process credit card transactions. A payment processor is a company that handles all the details of the transaction, and then moves the transaction through the processing network and collaborates with the bank to ensure that you are paid for your goods or services.

The procedure begins when a customer buys something on your business through your website with a credit or debit card. They enter their payment information into an online form which is then encrypted and transmitted it to the payment processor using the payment gateway. The processor will then contact the card issuer to verify whether the cardholder has sufficient credit available to pay for the transaction. When the issuing bank either accepts or denies the payment, the processor then sends a reply back to the gateway and to your website. The message can be simple, “Your payment was approved,” or more detailed, “Your payment was declined.”

The processor then submits the day’s transaction data to the card network and transfers the funds from the card issuer to the merchant bank (acquiring bank). After a short time of settlement, the acquiring banks deposit these funds into your merchant’s account. The entire process takes only a few seconds.

https://paymentprocessingtips.com/2020/03/02/what-to-look-for-in-payment-processing-services/