If you want your customers to be able to pay for goods or services online, you will need a credit card terminal payment processor. Accepting credit and debit card payments is not as easy as simply installing a plugin and watching the money flow. However, this does not mean the process has to be complicated.
With the right payment gateway, you can provide more payment options to your customers. It will take you time and research to find the right gateway. However, with some tips up your sleeve, it will be easy to narrow down the options available for one that will be best for you. Before starting to search for a credit card payment solution, it pays to know how processors work.
How Credit Card Payment Processing Systems Work
After doing some research on credit card payment processing, you may know you need a gateway. However, you may not understand why you need one or how the gateways work. In a nutshell, a payment getaway allows your business to securely send payment requests to customers. When a customer clicks the "pay" button on your website, the merchant services payment gateway will handle the processing from there.
A payment gateway does the following:
? Verifies that the billing information of the customer is correct as stored in the credit card details
? Verifies that the customer has enough funds for the transaction being carried out
? Approves or declines the customer's request to purchase service or products
? Ensures that your store or website's business bank account gets the funds from the customer's card
Having understood what a payment gateway does, it's not time to choose one that will be a great fit for your business.
Choosing a Payment Gateway
One of the things you have to decide is whether to choose a modern or classic payment gateway. Over the last decade, the technology used by payment gateways has drastically changed. In the past, business owners had to apply for a merchant account to accept credit card payments. A merchant account is a special bank account that enables businesses to receive payments from credit cards. Without the accounts, there was no way that a business could receive credit card payments.
However, things have changed over the last few years. Today, there are dozens of payment processors that do not require a merchant account. With these processors, funds are directly deposited to your bank account after being authorized to be withdrawn from customers' bank accounts.
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